Question
If a company has a high current ratio but a low acid-test ratio, one can conclude that: the company has a large outstanding accounts receivable
If a company has a high current ratio but a low acid-test ratio, one can conclude that:
| the company has a large outstanding accounts receivable balance. | ||
| the company has a large investment in inventory. | ||
| the company has a large amount of current liabilities. | ||
| the company's financial leverage is very high. |
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
