Which of the following statements is incorrect? O If the current ratio is too high the company may not be managing its assets effectively. O If the current ratio is too high the company may have overly high levels of inventory. O If the current ratio is too high the company may have too much cash on hand. O If the current ratio is too high the company may have an insignificant amount of receivables.
Which of the following statements is incorrect? O If the current ratio is too high the company may not be managing its assets effectively. O If the current ratio is too high the company may have overly high levels of inventory. O If the current ratio is too high the company may have too much cash on hand. O If the current ratio is too high the company may have an insignificant amount of receivables.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Which of the following statements is incorrect?
O If the current ratio is too high the company may not be
managing its assets effectively.
O If the current ratio is too high the company may have overly
high levels of inventory.
O If the current ratio is too high the company may have too
much cash on hand.
O If the current ratio is too high the company may have an
insignificant amount of receivables.
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