Final answer:
If a company converts its preliminary cash balance line to a cash excess (deficiency) line, it may be decreasing its cash flow.
The answer is option ⇒2
Step-by-step explanation:
When a company has a cash excess, it means that it has more cash on hand than it needs for its operations. This can indicate that the company is not effectively utilizing its cash and may be experiencing a decrease in its cash flow.
On the other hand, if a company has a cash deficiency, it means that it does not have enough cash to cover its obligations. This can also indicate a decrease in cash flow as the company may be struggling to meet its financial obligations.
The answer is option ⇒2