Question
A key part of your functions as a management accountant at Croesus Limited is to monitor the financial health of the suppliers of the business.
A key part of your functions as a management accountant at Croesus Limited is to monitor the financial health of the suppliers of the business. You have recently noticed that the Altman's Z-score of a supplier has decreased from 2.9 in 2022 to 1.7 in 2023. What decision should be taken regarding the supplier? A. Croesus Limited should search for a new supplier because a Z-score of 1.7 is Indicative of Imminent bankruptcy. B. The supplier is probably in a safe financial condition. c. Croesus Limited should assist the supplier with cash advance to avert it sliding into more difficult finaneial position in the future. D. The supplier will
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