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As a company becomes more conservative in its working capital policy, it would tend to have a (n):
Suggested Answer: B
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Choice 'b' is correct. As a company becomes more conservative in its working capital policy, it would tend to have an increase in the ratio of current assets to units of output.
Choice 'a' is incorrect. Acid-test ratio would tend to increase with conservatism.
Choice 'c' is incorrect. Marketable securities investments would tend to increase while common stock investments would tend to decrease.
Choice 'd' is incorrect. Permanent working capital would tend to increase.
9 comments · newest first
LA
Lavonne
11 months ago
Totally agree with C! It's all about stability.
DE
Denny
12 months ago
A conservative policy usually means more cash reserves.
LU
Luz
12 months ago
Wait, how does being conservative lead to more common stock? Sounds off.
TA
Tambra
12 months ago
I think D could be a possibility too.
DA
Dana
1 year ago
Definitely going with option C. Makes sense!
NO
Novella
1 year ago
I'm a bit confused here. The question mentions a "rolemod" command, but none of the options seem to be related to that. I'll need to think this through more carefully.
GI
Gilberto
1 year ago
Hmm, this looks like a tricky one. I'll need to carefully check for any hidden spaces or data type mismatches in the cells I'm searching.
DE
Delsie
1 year ago
This is a tough one. I'm a bit confused about the merge point and the label recording flag. I'll need to review those concepts before answering.
KR
Kris
1 year ago
Hmm, I'm not entirely sure about this one. I'll need to think it through step-by-step and consider the different possibilities.