Liquidity Ratios Indicate a Company's

question 51

Multiple Choice

Liquidity ratios indicate a company's

• A)ability to pay short-term debts.
• B)ability to generate a financial return on sales.
• C)relative amounts of funds supplied by creditors.
• D)ability to meet its long-term financial obligations.
• E)profitability and leverage ratios.

---

Definitions:

Scientific Process

A methodical and empirical approach to research and investigation characterized by systematic experimentation, observation, and analysis.

Internal Equity

The fairness in pay levels for employees within the same organization, ensuring that compensation is consistent with the value of different roles.

Reliability

The degree to which an assessment, measurement, or process consistently produces the same results under the same conditions.

Job Evaluation System

A method used by organizations to determine the value of a job in relation to other jobs within the organization, often influencing pay and grade.