Ratios:What is one of the downsides of a high current ratio?

What is one of the downsides of a high current ratio?

Question options:

  • Potential for a lot of foregone interest. (x)
  • Your current assets are less than your current liabilities
  • The quick ratio is always higher and the quick is the preferred ratio.
  • Having total assets greater than total liabilities is always good, there is not downside to a high current ratio.
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