How do you know if a firm is being overtraded, please help.
CPA PEP Prep Q&A
Financial management, financial analysis
Re: Financial management, financial analysis
by Joy Mulii 
- 24 Jan 2016, 8:33 AM
Simple, if the financial accounting calculations show that there is high demand for increasing production that the business is incapable of.
Re: Financial management, financial analysis
by Douglas Justo - 25 Jan 2016, 3:28 AM
Overtrading is a level that an organisation reaches above breaking point, meaning that the total sales are higher than the total costs, this implifies that the company is likely to experience high demand above its maximum supply limit.