A Liquidity Ratio Measures the

question 103

Multiple Choice

A liquidity ratio measures the

• A)profit or operating success of a company over a period of time.
• B)ability of the company to survive over a long period of time.
• C)short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash.
• D)ability of a company to raise capital.

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Definitions:

Prices

The amount of money required to purchase goods or services, often determined by factors such as supply and demand.

Sensory Adaptation

The phenomenon where sensory receptors reduce their sensitivity to unchanging stimuli over time, enabling organisms to concentrate on environmental changes.

Selective Attention

The process by which a person focuses on one input or task while ignoring other stimuli or information that is also present.

Neural Fatigue

A temporary reduction in the ability of neurons to generate responses, often due to prolonged activity or stimulation.