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NEW QUESTION: 1
A firm currently has a negative working capital. Which of the following is true?
A. The firm is close to bankruptcy.
B. The firm has a high debt-to-asset ratio.
C. The firm's accounting profits are low.
D. The firm's current ratio is less than 1.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Working capital = Current assets - Current liabilities. If working capital is negative, then current liabilities exceed current assets, implying a current ratio of less than 1.
NEW QUESTION: 2
A. Option D
B. Option A
C. Option B
D. Option C
Answer: B,C
NEW QUESTION: 3
A. Option D
B. Option A
C. Option C
D. Option B
Answer: B