Which of the Following Is True of Liquidity

question 77

Multiple Choice

Which of the following is true of liquidity?

• A) Liquidity metrics include assets turnover, price-earnings ratio, and dividend yield.
• B) Liquidity is the ability to convert assets to cash.
• C) Liquidity is the ability of a company to generate net income related to its invested assets.
• D) Liquidity metrics include debt ratio, times interest earned, and ratio of liabilities to stockholders' equity.

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Definitions:

VA Mortgage Loans

A loan program established by the United States Department of Veterans Affairs to help veterans, service members, and their surviving spouses buy homes.

GI Bill of Rights

A law that provided a range of benefits for returning World War II veterans, including low-cost mortgages, low-interest loans to start a business, and tuition and living expenses for education.

National Highway Network

A comprehensive system of roads and highways in a country that facilitates domestic and international trade, travel, and economic development.

Hunger

The discomfort, illness, or weakness caused by a lack of food, which may lead to malnutrition or starvation.