Which of the Following Statements Is incorrect

question 7

Multiple Choice

Which of the following statements is incorrect?

• A)If the current ratio is too high the company may not be managing its assets effectively.
• B)If the current ratio is too high the company may have overly high levels of inventory.
• C)If the current ratio is too high the company may have too much cash on hand.
• D)If the current ratio is too high the company may have an insignificant amount of receivables.

Analyze the effects of transactions on cash flows.

Compute cash payments and receipts related to operating activities.

Determine the impact of changes in current asset and liability accounts on cash flows.

Explain the significance and calculation of free cash flow.

---

Definitions:

Diabetes

A chronic condition characterized by high levels of sugar in the blood due to the body's inability to produce or effectively use insulin.

Routine

A set of customary or habitual actions performed regularly, often to maintain health or fitness.

Unique

Being the only one of its kind; unlike anything else.

Prostate Cancer

A form of cancer that develops in the prostate, a gland in the male reproductive system, and can vary in aggressiveness.