Which of the following statements is incorrect?
A)For most businesses, increases in spontaneous liabilities will be enough to fund the necessary increases in assets.
B)The capital intensity ratio indicates the amount of assets the firm needs to invest to generate each dollar in sales.
C)The vast majority of fixed assets are "chunky" or "lumpy" since they have to be bought in non-divisible quantities.
D)All of these statements are correct.

Question

Quizplus · Accepted Answer

Spontaneous liabilities, such as accounts payable and accruals, typically do not increase sufficiently to fund all necessary asset increases for most businesses.

Which of the Following Statements Is Incorrect