Which One of the Following Statements Is True

question 64

Multiple Choice

Which one of the following statements is true?

• A)Liquidity refers to a company's ability to pay its current and long-term debts.
• B)A company is always considered a serious credit risk if its quick ratio is below one.
• C)All other things being equal,the existence of a line of credit enhances the ability of a company to meet its short-term obligations.
• D)Liquid assets include all current assets.

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Definitions:

Mortgage

A loan secured by the collateral of specified real estate property, where the borrower is obliged to make a predetermined set of payments to the lender.