A Liquidity Ratio Measures the

question 131

Multiple Choice

A liquidity ratio measures the

• A) 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) number of times interest is earned or "covered".

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Definitions:

Hematite

An iron oxide mineral that is one of the main ores of iron, recognized by its reddish-brown color.

Magnetite

A naturally occurring magnetic mineral, consisting of iron oxide, often mined as an iron ore.

Perpendicular Directions

This refers to two lines or directions that intersect at a 90-degree angle.

Nonperpendicular Directions

Nonperpendicular directions refer to lines or paths that do not intersect at a right angle, diverging from orthogonality in a spatial relationship.