Which of the following is most likely to occur if a firm over-invests in net working capital?
A) The current ratio will be lower than it should be.
B) The quick ratio will be lower than it should be.
C) The return on investment will be lower than it should be.
D) The times interest earned ratio will be lower than it should be.
Darshita Changed status to publish August 7, 2020
Answer:
C) The return on investment will be lower than it should be.
Darshita Changed status to publish August 7, 2020
