Liquidity Ratios Measure the Ability of an Entity To

question 11

Multiple Choice

Liquidity ratios measure the ability of an entity to:

• A) remain a going concern.
• B) meet its short-term obligations and unexpected cash needs.
• C) generate profit.
• D) all of the options are correct.

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Definitions:

Audience Categories

Different groups of people classified by specific characteristics, interests, or needs, which content or presentations can be tailored to.

Cultural Variables

Factors that vary from one culture to another, affecting communication, behavior, and values, and requiring consideration in a global context.

Political

relating to the governance of a country or other area, especially the debate between parties having power.

Economic

Pertaining to the production, distribution, and consumption of goods and services, or the wealth and resources of a region.