Which of the following statements about inventory is incorrect? The determination of working capital excludes inventory because of its lower liquidity. The composition of the current assets matters because a dollar of cash is more readily available to pay the bills than is a dollar of inventory. Inventory is more liquid than prepaid expenses. A satisfactory current ratio does not disclose whether a portion of the current assets is tied up in slow-moving inventory.

Which of the following statements about inventory is incorrect? The determination of working capital excludes inventory because of its lower liquidity. The composition of the current assets matters because a dollar of cash is more readily available to pay the bills than is a dollar of inventory. Inventory is more liquid than prepaid expenses. A satisfactory current ratio does not disclose whether a portion of the current assets is tied up in slow-moving inventory