Which Statement Concerning the Current (Working Capital) Ratio Is Incorrect

question 10

Multiple Choice

Which statement concerning the current (working capital) ratio is incorrect?

• A) A low current ratio may indicate difficulty in meeting short-term commitments.
• B) The current ratio can be manipulated at balance date,
• C) A high current ratio may indicate excessive investment in working capital.
• D) A current ratio of $1.50 of current assets for each $1 of current liabilities should always be maintained.
• E)g. by using cash to pay off short-term debt.

Identify the factors that have slowed productivity growth in the last 30 years.

Explain the components of gross savings.

Understand how Malthusian theory applies to population growth and its limitations.

Comprehend the historical and contemporary trends in work hours and productivity growth.

---

Definitions:

Multicellular

Organisms that consist of more than one cell, exhibiting cellular differentiation and specialization for various functions.

Hierarchical Organization

A system of organization where entities are ranked one above the other based on authority or status.

Tissues

Groups of similar cells that work together to perform a specific function within an organism, such as muscle tissue or nervous tissue.

Organs

Structures in living organisms composed of different tissues that perform specific functions, such as the heart, liver, or lungs.