题目
题目

COMM_V 370 101-108 2025W1 COMM 370-Practice Midterm-2025-W1

多项选择题

Which of the following statements about financial ratios are correct?  Select ALL that apply.

选项
A.A current ratio far below 1 is a cause for concern.
B.Net working capital is defined as current assets less current liabilities.
C.A firm whose inventory period exhibits a lengthening trend will likely need to cut production.
D.Financial managers should always aim to maximize their liquidity ratios.
E.Financial ratios provide definitive (not relative) measures of a company's performance and condition.
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标准答案
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思路分析
When evaluating statements about financial ratios, it's important to consider standard financial principles and how ratios are used in practice. Option A: 'A current ratio far below 1 is a cause for concern.' A current ratio below 1 suggests current liabilities exceed current assets, which typically signals liquidity problems and potential short-term cash flow difficulties. This is generally a......Login to view full explanation

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