Which asset-liability combination would most likely result in the firm's having the greatest risk of technical insolvency?

Replacing short-term debt with equity.

Increasing current assets while lowering current liabilities.

Increasing current assets while incurring more current liabilities.

Reducing current assets, increasing current liabilities, and reducing long-term debt.

Which asset-liability combination would most likely result in the firm

1.	Which asset-liability combination would most likely result in the firm's having the greatest risk of technical insolvency?
A.	Increasing current assets while lowering current liabilities.
B.	Increasing current assets while incurring more current liabilities.
C.	Reducing current assets, increasing current liabilities, and reducing long-term debt.
D.	Replacing short-term debt with equity.
Answer» D. Replacing short-term debt with equity.