Investigating Liquidity Is Important Because

question 121

Multiple Choice

Investigating liquidity is important because

• A)if a company cannot pay its bills on time, it will have difficulty obtaining resources needed to continue operating.
• B)a company needs the ability to buy long-term assets.
• C)a company's price earnings ratio will decline.
• D)GAAP requires that assets must exceed liabilities.

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Definitions:

Defamatory Speech

Defamatory speech involves making false statements about someone that could harm their reputation or standing in the community.

First Amendment

A change to the U.S. Constitution that safeguards rights related to religious practices, speech, gathering, and the ability to petition.

Rational-basis Test

A standard of review used by courts to evaluate government statutes and regulations, where the law is presumed constitutional as long as it is rationally related to a legitimate government interest.

Commerce Clause

The Commerce Clause refers to a provision in the United States Constitution that grants Congress the power to regulate commerce with foreign nations, among the several states, and with the Indian tribes.