Which of the following is NOT true of liquidity ratios?
A) They measure the ability of the firm to meet short-term obligations with short-term assets without putting the firm in financial trouble.
B) There are two commonly used ratios to measure liquidity—current ratio and quick ratio.
C) For manufacturing firms, quick ratios will tend to be much larger than current ratios.
D) The higher the number, the more liquid the firm and the better its ability to pay its short-term bills.
Answer: C
1 comments:
Covid-19 has a tough year ever but with the help of Mr Pedro loan offer I was able to get through because his loan offer of 2% really helped me alot and I 'm grateful to share on here that Mr Pedro offer loans at 2% rate also he can fund any type of legitimate business or seeking for personal financial assistance. Email: pedroloanss@gmail.com And Whats-App: +1- 8632310632
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.