A Liquidity Ratio Measures the

question 54

Multiple Choice

A liquidity ratio measures the

• A)income or operating success of a company over a period of time.
• B)ability of a company to survive over a long period of time.
• C)short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash.
• D)percentage of total financing provided by creditors.

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Definitions:

Factual and Statistical Information

Data and details based on real occurrences and quantitative measurements, used to support arguments, analyses, or research findings.

Formal Style of Communication

A method of interaction that follows established conventions and often uses professional or technical language.

Generation

A group of people born around the same time, who share similar cultural, social, and political attitudes.

Veteran

An individual with extensive experience or service in a particular field or occupation.