CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Assuming current assets and current liabilities remain a constant proportion of sales (30 percent and 20 percent respectively) as sales grow 5 percent annually, through time the current ratio will most likely ______.
A. decrease
B. increase
C. remain unchanged
Explanation: Because the proportion relative to sales does not change, the current ratio will remain unchanged.

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