Which statement is not correct?
A) Low liquidity ratios are not desirable
B) High liquidity ratios are not necessarily desirable
C) Low liquidity ratios can indicate liquidity problems
D) A current ratio of greater than 2:1 means that an entity must have sufficient liquidity to pay its debts as they fall due
Correct Answer:
Verified
Q32: The current ratio is a
A)Liquidity ratio.
B)Cash flow
Q33: Morgan Trading Pty Ltd has the
Q34: A high times debtors turnover indicates
A)the entities
Q35: Which statement is true?
A)If the equity ratio
Q36: Which of these is not considered to
Q38: Greenfields Pty Ltd has a quick asset
Q39: If creditors allow 30 days from the
Q40: Earnings per share is calculated by dividing
A)ordinary
Q41: It is only necessary to calculate _
Q44: _ analysis is a technique for evaluating
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