A firm with a high liquidity ratio is definitely practising effective working capital management.This statement is:
A) True, higher liquidity means that the firm has more cash than it spends.
B) False, higher liquidity means payables are paid much later than receivables and this hurts the firm's reputation
C) True, higher liquidity ratio means receivables are greater than payables.
D) False, the firms' working capital management policy may be too conservative or too lenient
Correct Answer:
Verified
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