Which of the following statements is false ? (A) Assuming a constant level of fixed assets, a higher Current Assets to Fixed Assets Ratio indicates a conservative current asset policy (B) A conservative current asset pol
CS Executive · Financial and Strategic Management · PYQS · December 2022
Which of the following statements is false ? (A) Assuming a constant level of fixed assets, a higher Current Assets to Fixed Assets Ratio indicates a conservative current asset policy (B) A conservative current asset policy implies lower liquidity and higher risk (C) A firm needs to strike off a balance between fixed assets and current assets so as to assure optimum liquidity and profitability (D) All the above are true
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Financial Management
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