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:

Income Elasticity

An indicator of the variation in demand for a product based on alterations in consumer income.

International Value

The worth of a product, service, or currency as recognized and accepted across different countries and economies.

Agricultural Exports

Products derived from farming and agriculture that are sold by one country to other countries, which can include crops, livestock, and other agricultural produce.

Dollar

A currency unit used by the United States and some other countries, recognized by its symbol $.