Can anyone provide different ways in which management can window-dress the financial statements in an attempt to improve the appearance of its current financial position as reflected in thecurrent and quick ratios?
2007-02-25 16:02:02 · 2 answers · asked by Munch_101 1 in Business & Finance ➔ Other - Business & Finance
determining a companies financial position using the quick ratio method gives a ratio that can be compared to the standard industry rate. it is based on the liquidity of the companies assets It doesn't allow scrutiny of the state of the assets
the current assets may be tied up in slow moving inventory, work in process and companies may be using different inventory valuation methods It may suggest a strong financial position, when in fact most assets considered liquid-able are not.
2007-02-26 15:38:28 · answer #1 · answered by ? 6 · 0⤊ 0⤋
Yes, cut the capital expenditure projections and the reserves and put them into cash.
2007-02-26 07:22:37 · answer #2 · answered by Santa Barbara 7 · 0⤊ 0⤋