How Many of the Following Statements Are True? Liquidity Refers

question 68

Multiple Choice

How many of the following statements are true? Liquidity refers to a company's ability to pay current obligations or debts.
A company is always considered a serious credit risk if its quick ratio is below one.
All other things equal, the existence of a line of credit enhances the ability of a company to meet its short-term obligations.
Liquid assets include all current assets.

• A) One
• B) Two
• C) Three
• D) Four

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