Multiple Choice
Which of the following statements concerning the current ratio is incorrect?
A) The current ratio can be manipulated at balance date,e.g. by using cash to pay off short-term debt.
B) A high current ratio may indicate excessive investment in working capital.
C) A low current ratio may indicate difficulty in meeting short-term commitments.
D) A current ratio of 1.5 to 1 should always be maintained.
Correct Answer:
Verified
Correct Answer:
Verified
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