Which of the following statements is generally not true from an investor's perspective?
A)A 1:1 current ratio is generally preferred over a 1.5:1 current ratio.
B)A 20-day average collection period for accounts receivable is generally preferred over a 30-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

The current ratio is expressed as the number of dollars of current assets for each dollar of current liabilities.A company with a current ratio of 1.5:1 appears to have a stronger working capital position than one with a current ratio of 1:1.

Which of the Following Statements Is Generally Not True from an Investor's