Which of the following could offset the higher risk exposure a company would face if it s current ratio and net working capital were relatively low?
A) Its current assets would need to be highly liquid.
B) Its accounts receivable collection policy could increase the average collection period.
C) It could offer no discounts for early payment by its customers.
D) It could buy back some of its shares in the open market in order to reduce its equity.
Darshita Changed status to publish August 7, 2020
Answer:
A) Its current assets would need to be highly liquid.
Darshita Changed status to publish August 7, 2020
