Ratios That Focus on Cash Are More Useful Than Those

question 21

True/False

Ratios that focus on cash are more useful than those that focus on income in the evaluation of the liquidity of a company.

---

Definitions:

Financial Resources

Monetary assets that are available and can be used to facilitate transactions or investments by individuals or organizations.

Focused Strategy

A business approach that targets a particular market niche or demographic with tailored products or services.

Customer Niche

A focused, targetable portion of a market by which specific products or services are marketed to meet the unique demands of its audience.

Broader Market

Refers to a wide and diverse range of buyers and sellers in an extensive market beyond niche or specific industry segments.