CFA Practice Question

There are 520 practice questions for this study session.

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
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