Which of the following warning signs of financial difficulty would be less detectable on a company's financial statement?

The correct answer focuses on the warning signs of financial difficulty that are less likely to be immediately visible on a company's financial statements. The deferral of equipment maintenance and cutback on staff training may not directly reflect in financial statements, as these actions often manifest through operational inefficiencies rather than instant financial losses. For instance, delayed maintenance might not result in an immediate expense but can lead to higher long-term costs and disruptions in productivity, which are harder to quantify on financial statements until significant problems arise.

In contrast, the other options typically present more immediate impacts on a company’s financial condition. Slow payments to suppliers or delinquent tax payments would show as liabilities or overdue accounts, making them easily identifiable. Higher line borrowings and asset sales would be reflected in debt levels and cash flow statements, while lower cash balances and staff reductions are readily apparent on balance sheets and income statements. Therefore, these options present more direct indicators of financial distress than the operational cutbacks indicated in the correct answer.