Which statement concerning working capital is not true?
A)It is possible to have too much working capital.
B)It is possible to have too little working capital.
C)The greater the working capital the better.
D)There is an 'ideal' level of working capital.

Question

Quizplus · Accepted Answer

The statement "The greater the working capital the better" is not true. While having sufficient working capital is important, having too much working capital can indicate that the company is not effectively utilizing its resources and may be missing out on opportunities for growth or investment. Therefore, there is no fixed or ideal level of working capital as it varies depending on the company's size, industry, and specific needs.

Which Statement Concerning Working Capital Is Not True