Which of the following is false?
A) The cash ratio is the most stringent and reliable test of liquidity.
B) A company with a high level of inventory will have a quick ratio significantly lower than its current ratio.
C) A current ratio that is too high could indicate funds tied up in inventory and other working capital assets.
D) Analysts consider a current ratio of 2 to be financially conservative.
Correct Answer:
Verified
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