A Liquidity Ratio Measures the

question 106

Multiple Choice

A liquidity ratio measures the

• A) income or operating success of an enterprise over a period of time.
• B) ability of the enterprise to survive over a long period of time.
• C) short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash.
• D) number of times interest is earned.

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Definitions:

Blood cells

Cells that circulate in the bloodstream, comprising red blood cells (erythrocytes), white blood cells (leukocytes), and platelets (thrombocytes).

Hemoglobin

A protein in red blood cells responsible for carrying oxygen throughout the body.

Venipuncture

is the process of puncturing a vein with a needle to draw blood for testing, to give medication, or to start an intravenous line.

Femoral vein

A major blood vessel in the thigh and leg that returns oxygen-depleted blood back to the heart.