Skip to content
Notes
My performance
Pricing
Refer and earn
Account
Sign in
Back to the note ✕
A company's current ratio rises from 2.0 to 3.5. Why might this not be good news?
A
Inventory may not be selling and receivables may not be collected
B
It automatically increases the cost of capital
C
It means current liabilities have been understated
D
A ratio above 3.0 breaches accounting standards
Check answer
Practising Financial Analysis and Ratios.
