Which of the Following Is False

question 33

Multiple Choice

Which of the following is false?

• A)The cash ratio is the most stringent and reliable test of liquidity.
• B)A company with a high level of inventory will have a quick ratio significantly lower than its current ratio.
• C)A current ratio that is too high could indicate funds tied up in inventory and other working capital assets.
• D)Analysts consider a current ratio of 2 to be financially conservative.

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Definitions:

Appreciation

Recognition and enjoyment of the good qualities of someone or something, often expressed as gratitude.

Competitive Applicants

Individuals who stand out in a selection process due to their qualifications, experience, or skills, making them strong contenders for a position or opportunity.

Terminating Employee

The process of formally ending an individual's employment with an organization, typically due to performance issues, restructuring, or other business needs.

Clear Reasons

Explicit and understandable motives or explanations for an action or decision.