Which of the following statements is incorrect?
A)For most businesses, increases in spontaneous liabilities will be enough to fund the necessary increases in assets.
B)The capital intensity ratio indicates the amount of assets the firm needs to invest to generate each dollar in sales.
C)The vast majority of fixed assets are "chunky" or "lumpy" since they have to be bought in non-divisible quantities.
D)All of the options are correct.

Question

Quizplus · Accepted Answer

For most businesses, increases in spontaneous liabilities are typically not sufficient to fund necessary increases in assets, as additional financing is often required.

Which of the Following Statements Is Incorrect