Which of the following statements is generally incorrect?
A)A 2:1 current ratio is generally preferred over a 1:1 current ratio.
B)A 30-day average collection period for accounts receivable is generally preferred over a 20-day average collection period.
C)A 5% dividend yield is generally preferred over a 3% dividend yield.
D)A 10% net margin is generally preferred over an 8% net margin.

Question

Quizplus · Accepted Answer

A shorter collection period is preferred over a longer period; the sooner cash is received, the sooner it can be use

Which of the Following Statements Is Generally Incorrect