A Liquidity Ratio Measures the

question 38

Multiple Choice

A liquidity ratio measures the

• A) earnings or operating success of a company over a specific time period.
• B) ability of the company to survive in the long-term future.
• C) short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash.
• D) number of times interest is earned.

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Definitions:

Causation

The demonstration of how one event or action is the result of or factors into the occurrence of another event or action.

"But For" Rule

A principle used in the causation analysis of legal cases, indicating that an event would not have occurred 'but for' the actions of the defendant.

Duty Of Care

Duty of care is a legal obligation imposed on individuals or organizations to take reasonable care to avoid causing harm to others in specific circumstances.

Invitee

A person who is invited onto property or premises for the benefit of the property owner or occupier, thus granted higher safety and care standards.