CFA Practice Question

There are 1140 practice questions for this topic.

CFA Practice Question

If ending inventory is overstated and beginning inventory is understated, the current ratio will be ______.

A. lower
B. higher
C. constant
Correct Answer: B

Overstated EI will make the current ratio larger than it actually is.

User Contributed Comments 3

User Comment
o123 beginning inventory has no affect on CR
jgraham6 good one!!!
cschulz316 CURRENT ratio
You need to log in first to add your comment.