Which of the Following Is NOT a Characteristic of Liquidity

question 16

Multiple Choice

Which of the following is NOT a characteristic of liquidity?

• A) measures the ability of the firm to pay financial obligations as they become due
• B) can be measured in terms of working capital
• C) can be assessed by the current ratio
• D) measures the ability of the company to pay its long-term debts

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Definitions:

Foreign Distribution Agreements

Contracts between companies for the distribution of goods or services in countries other than their own.

Merchandise

Goods that are bought and sold in commerce; typically refers to the items stocked and offered for sale by a retail or wholesale business.

Arbitration Clause

A provision in a contract requiring that disputes between the parties be resolved through arbitration rather than through the court system.

Philippine Law

Refers to the legal system in the Philippines which is primarily based on Spanish and American law, with influences from indigenous and other foreign legal systems.