Question
If a firm has a high current ratio but a low acid-test ratio, one can conclude that: a the firm has a large outstanding accounts
If a firm has a high current ratio but a low acid-test ratio, one can conclude that:
| a | the firm has a large outstanding accounts receivable balance. |
| b | the firm has a large investment in inventory. |
| c | the firm has a large amount of current liabilities. |
| d | the firm's financial leverage is very high. |
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Fundamental Accounting Principles
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870
