Which of the Following Statements Regarding Liquidity and Profitability Is

question 123

Multiple Choice

Which of the following statements regarding liquidity and profitability is not true?

• A)If a business is unable to pay its debts as they come due,it is operating unprofitably.
• B)A business may be liquid,yet operate unprofitably for several years.
• C)A business may operate profitably,yet be unable to meet its obligations.
• D)In order to survive in the long run,a business must both remain liquid and operate profitably.

---

Definitions:

Testable Prediction

A testable prediction is a specific statement about the expected outcome of a scientific experiment, based on a hypothesis or theory, that can be observed and measured.

Independent Variables

Variables in an experiment that are manipulated or changed to observe their effects on dependent variables.

Dependent Variables

In an experiment, the variable that is being measured or tested, expected to change as a result of manipulation of the independent variable.

Meta-Analysis

A statistical technique for combining the findings from independent studies to determine the overall trend of results.