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a. A declining current ratio might be a sign of a deteriorating financial condition.d. A declining current ratio might be the result of eliminating obsolete inventories.c. An improving current ratio might be the result of stockpiling inventories.d. The general rule of thumb calls for a current ratio of3:1
d. The general rule of thumb calls for a current ratio of3:1
Option D
NORMAL FROM .5 TO2.
d
OPTION. D
D is the correct answer as the general rule of thumb is2:1
D option is most favorable.
D) Depends on the industry under scrutiny as retailers / supermarkets have no debtors, high creditors; all business is paid by cash transactions, inventory levels are high; therefore ratio will not be3:1
Option (D) is the correct answer
Option C
Option----- D
