Which of the Following Statements Regarding Liquidity and Solvency Ratios

question 62

Multiple Choice

Which of the following statements regarding liquidity and solvency ratios is true?

• A)Unlike solvency ratios,liquidity ratios relate to the company's long-run survival.
• B)Both liquidity ratios and solvency ratios measure a company's ability to meet its financial obligations.
• C)Liquidity ratios include the return on equity ratio and the times interest earned ratio.
• D)Solvency ratios include the current ratio and the net profit margin ratio.

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Definitions:

Disorganized

Describes a lack of structure or order, often leading to difficulty in finding things or focusing on tasks.

Catatonic

A psychomotor disturbance characterized by abnormal movement patterns, including rigidity, immobility, or excessive, purposeless movement.

Undifferentiated

Lacking distinctive features or not specialized in function.

Paranoid

A mental state characterized by irrational distrust or suspicion of others, often without sufficient basis.