The Tigers' accounts - which were filed five months late - have been assessed by auditors Deloitte, who believe they could be in a perilous position should they lose their Premier League status.
A report warns chairman Paul Duffen and the club's directors they would need to generate a surplus of £23million if Phil Brown's side were to be relegated to the Championship.
City retained their top flight status on the final-day of last season, and currently lie 18th in the table.
If Hull stayed up for another season, the accounts say they would still need a £16m surplus to continue living by their current means.
The report warns players would have to be sold in an attempt to balance the books.
The accounts cover the year ending 31st July 2008, when the club made a loss of nearly £10m as they won promotion via the play-offs.
The books do not include the figures from The Tigers' first season in the top tier of English football.
Concern"These forecasts demonstrate that in order to operate within the company's finance facilities Hull City will need to generate a surplus £23m during the next 12 months through player trading, match day and commercial income and/or through additional finance raising," the report read.
"In the event the club retain Premier League status for the 2010-11 season, the additional funding required for the 12 month period will be in the region of £16m."
The report adds that the club's directors are aware of "some uncertainty that exists" over the ability to raise extra cash if required.
It concludes: "These conditions indicate the existence of material uncertainty which may cast significant doubt about the company's ability to continue as a going concern."
Brown's men enjoyed a fine start to life in the Premier League, but have fallen on harder times, winning just three of their last 32 league outings.
They also lost influential defender Michael Turner to Sunderland in the transfer window, who was sold for £6m.
ConfidentHowever, club directors are confident the accounts will give a more positive outlook once the finances of their first Premier League campaign are factored in, an estimated £40m.
Those accounts are not due to be filed till next summer.
A statement from the club also said that they were in negotiations to bring forward £7m worth of payments owed from the Premier League.
"The financial benefits arising from the Premier League's broadcasting rights are not recognised until the following financial year, where the losses incurred this year are forecast to be made good," it read.
"The directors have a reasonable expectation that the company have adequate resources to continue in operational existence for the foreseeable future."