medium · Principles of Finance capital-budgeting

Which of the following signals would most likely lead to a 'low' score (indicating potential financial manipulation) on the Beneish M-Score or the Piotroski F-Score?

  1. Accounts Receivable growing significantly faster than Revenue.
  2. Increasing Asset Turnover.
  3. A decreasing Debt-to-Equity ratio over multiple periods.
  4. Operating Cash Flow (CFO) consistently exceeding Net Income.

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