A Liquidity Ratio of 9 Indicates That a Business ____

question 21

Multiple Choice

A liquidity ratio of 9 indicates that a business ____.

• A) will run out of money in 9 days
• B) has liquid assets equivalent to the costs of 9 days of operation
• C) has 9 times as much assets as debts
• D) is 9 times more likely to fail than average

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Definitions:

Facial Expressions

Visible changes in the face that convey emotional states, intentions, or social information.

Attachment Bonds

Emotional bonds that form between individuals, such as those between parents and children, often influencing patterns of interpersonal relationships later in life.

Familiarity

The quality of being well known to someone, often through repeated experience or exposure.

Stranger Anxiety

A form of distress that young children experience when exposed to people unfamiliar to them.