Home › Bihar Board Class 12 (Commerce) › Accountancy › Analysis of Financial Statements: Tools and Accounting Ratios › A very high current ratio usually suggests what?
A very high current ratio usually suggests what?
AZero risk of bankruptcy
BExcellent efficiency
CHeavy idle current assets
DVery large cash profits
Answer & Solution
Correct answer: C. Heavy idle current assets
Too much invested in current assets points to under-use of resources.
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