Which of the Following Statements Is Incorrect

question 63

Multiple Choice

Which of the following statements is incorrect?

• A)It is possible for a profitable company to go out of business because of short-term liquidity problems.
• B)If a company has a current ratio greater than 1, it will never go out of business because of liquidity problems.
• C)The current ratio is always greater than or equal to the quick ratio.
• D)The accuracy of a cash flow forecast is inversely related to the forecast horizon.

Understand the use of variance analysis as a tool for management by exception.

Appreciate the potential advantages and disadvantages of using standard costs.

Understand the legal and historical developments in the banking system and the issuance of checking deposits.

Grasp the concept of financial intermediaries and distinguish between different types of financial institutions.

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Definitions:

Position

A standpoint or perspective adopted by an individual or group, often influenced by opinions or beliefs on a particular issue.

Organization

The arrangement or structure of interrelated elements in a system or entity.

References

A list of sources or a mention of the source(s) of information, used to give credit in research papers or reports.

Second Interview

A follow-up meeting in the job application process where a candidate has another opportunity to discuss their qualifications and fit for a position.