Which of the Following Statements About Liquidity and Solvency Ratios

question 136

Multiple Choice

Which of the following statements about liquidity and solvency ratios is correct?

• 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:

Self-Management

The ability to understand oneself, exercise initiative, accept responsibility, and learn from experience.

Supervisory Control

A level of management that involves overseeing the performance and activities of employees, ensuring that tasks are completed effectively and efficiently.

Plans

Detailed proposals for doing or achieving something, often outlining goals, strategies, and actions.

Goal Alignment

The process of ensuring that everyone's individual objectives contribute effectively towards the overall objectives and success of the organization.