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Which not true statement about maximizing stakeholder value

Assignment Help Financial Accounting
Reference no: EM132945300

Problem 1: When a firm's current ratio is significantly smaller than its quick ratio:

Select one:

A. An error must have been made calculating the ratios - the current ratio can not be lower than the quick ratio!

B. Its inventory is a large portion of current assets

C. Its inventory turnover is low in comparison to other current assets

D. Its inventory is no longer considered to be a current asset

Problem 2: Which of the following is not a true statement about maximizing stakeholder value?

I. It is tends to ignore risk when making decisions

II. It considers profitability to be the major investment goal

III. It is a short-term, rather than long-term perspective

Select one:

A.I only

B.I and II only

C.I and III only

D.I, II, and III

Reference no: EM132945300

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