The Statement Concerning the Current Working Capital)ratio That Is Incorrect

Multiple Choice

The statement concerning the current working capital) ratio that is incorrect is: e.g.by using cash to pay off short-term debt

A) A low current ratio may indicate difficulty in meeting short-term commitments
B) A current ratio of $1.50 of current assets for each $1 of current liabilities should always be maintained
C) A high current ratio may indicate excessive investment in working capital
D) The current ratio can be manipulated at balance date,