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

question 41

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,

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Definitions:

Organizational Structure

The system that outlines how certain activities are directed in order to achieve the goals of an organization, including roles, responsibilities, and authority.

CEO

Chief Executive Officer; the highest-ranking executive in a company, responsible for making major corporate decisions.

Marketing Manager

A professional responsible for leading and guiding the strategies that promote and sell products or services to target consumers.

Production Manager

An individual responsible for the planning, coordination, and control of manufacturing processes, ensuring goods are produced efficiently, at the right cost, and level of quality.