The effect of a decrease in the ratio of current assets to total assets and the effect of an increase in the ratio of current liabilities to total assets are increases in the firm's profits and, correspondingly, its risk.
Correct Answer:
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Q2: Net working capital is defined as
A) a
Q3: The goal of short-term financial management is
Q4: The goal of working capital management is
Q5: A firm that is unable to pay
Q6: The conversion of current assets from inventory
Q8: An increase in current assets increases net
Q9: The portion of a firm's current assets
Q10: Too much investment in current assets reduces
Q11: Because firms are unable to match cash
Q12: As the ratio of current assets to
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