Liquidity Ratios Focus on Whether There Are Sufficient Current Assets

question 57

True/False

Liquidity ratios focus on whether there are sufficient current assets to satisfy current liabilities as they come due.

---

Definitions:

Consumption Expenditures

Total spending by households on goods and services, excluding purchases of new housing.

Saving

The process of setting aside a portion of current income for future use.

Domestic Investment

Financial expenditures within a country on capital goods that will be used for future production, such as buildings, machinery, and equipment.

Goods and Services

Physical products and intangible acts or performances offered in the market for consumption.