If an organization has a high amount of working capital compared to the industry average, which of the following is most likely true?

If an organization has a high amount of working capital compared to the industry average, which of the following is most likely true?
A . Settlement of short-term obligations may become difficult.
B . Cash may be bed up in items not generating financial value.
C . Collection policies of the organization are ineffective.
D . The organization is efficient in using assets to generate revenue.

View Answer

Answer: B