Multiple Choice
Lakeland Corporation has working capital of $440,000,and Houston Corporation has working capital of $320,000.Which of the following statements is incorrect?
A) Since working capital is an absolute amount,other factors such as size of the company and materiality will help to determine liquidity of these two companies.
B) Since Lakeland's working capital exceeds Houston's working capital,it is safe to conclude that Lakeland is more liquid than Houston.
C) If Houston Corporation is smaller than Lakeland or has lower current liabilities;Houston could be more liquid than Lakeland.
D) None of these answer choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: Indicate whether each of the following statements
Q15: In vertical analysis,each item is expressed as
Q16: You are considering an investment in Microsoft
Q17: Which ratios measure a company's long-term debt
Q18: Steger Corporation has current assets of $450,000,total
Q20: The following balance sheet information was provided
Q21: Indicate whether each of the following statements
Q22: Indicate whether each of the following statements
Q23: On January 1,2015,Gatewood paid $4,600 on accounts
Q24: The Davis Company reported net income of