What Is the Difference Between a Liquidity Ratio and a Leverage

question 20

Multiple Choice

What is the difference between a liquidity ratio and a leverage ratio?

• A)Liquidity ratios do not include debt while leverage ratios include debt.
• B)Liquidity has a short-term focus while leverage has a long-term focus.
• C)Liquidity ratios use balance sheet accounts while leverage ratios use the income statement.
• D)There is no difference.

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Definitions:

Organic Reaction

A chemical reaction involving organic compounds, leading to the transformation or creation of new organic molecules.

Pericyclic Reaction

A type of organic reaction that proceeds through a cyclic transition state, involving shifts of electron density through contiguous π bonds.

LUMO

The Lowest Unoccupied Molecular Orbital, which is the lowest-energy molecular orbital that is not occupied by electrons.

1,3,5-Hexatriene

A linear, conjugated hydrocarbon with alternating single and double bonds.