Which of the Following Statements Is Correct

question 76

Multiple Choice

Which of the following statements is correct?

• A)The cash ratio measures a firm's ability to pay long-term debt with its available cash and marketable securities.
• B)Holding extremely high levels of liquidity to guard against liquidity crises is an inappropriate goal for the firm.
• C)The quick (or acid-test) ratio measures a firm's ability to pay off short-term obligations with long-term debt.
• D)The current ratio is a more stringent measure of liquidity than the quick (or acid-test) ratio.

---

Definitions:

Training

An educational process that aims to enhance skills, knowledge, and competencies for a specific purpose or job.

Expectancy Theory

A motivational theory suggesting that an individual's behavior is determined by their expected outcomes and the attractiveness of those outcomes.

Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal.

Skills

Abilities or expertise developed through practice or training that enable a person to perform tasks effectively.