Liquidity Ratios Measure the Short-Term Ability of a Company to Pay

question 35

True/False

Liquidity ratios measure the short-term ability of a company to pay its maturing obligations and meet unexpected needs for cash.

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Definitions:

Challenges

are difficulties and obstacles that need to be overcome in order to achieve a goal or complete a task.

Manager

An individual in an organization responsible for controlling or administering all or part of a company or similar organization.

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Performance Effectiveness

The measure of how well an individual or organization achieves their goals and objectives.