Liquidity Ratios Can Be Used

question 25

Multiple Choice

Liquidity ratios can be used:

• A)to measure the degree of protection of long-term suppliers of funds.
• B)to measure borrowing capacity.
• C)to measure the earning ability of a firm.
• D)to measure the firm's ability to meet its current obligations.
• E)to measure the worth of the firm.

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Definitions:

Dental Coverage

A type of health insurance that specifically covers the costs associated with dental care services.

Life Insurance

A contract between an insurer and a policyholder, providing a death benefit to beneficiaries in exchange for premiums paid by the policyholder.

Positive Reinforcement

An approach to encourage a specific behavior by offering a reward or positive outcome after the behavior is exhibited.

Contingent

Dependent on or conditioned by something else; not absolute or certain.