Which of the Following Is NOT True of Liquidity Ratios

question 34

Multiple Choice

Which of the following is NOT true of liquidity ratios?

• A) They measure the ability of the company to meet short-term obligations with short-term assets without putting the company in financial trouble.
• B) There are two commonly used ratios to measure liquidity-current ratio and quick ratio.
• C) For manufacturing companies, quick ratios will tend to be much larger than current ratios.
• D) The higher the number, the more liquid the company and the better its ability to pay its short-term bills.

---

Definitions:

Values Conflicts

Situation where two or more values that an individual holds are in opposition, creating a dilemma or discomfort.

Vaginal Infections

Health conditions involving inflammation or infection of the vagina, often caused by bacteria, yeast, or other organisms.

Douching

A practice of rinsing or cleaning out the vagina with water or other mixtures of fluids, often discouraged by healthcare professionals due to potential health risks.

Transgender

A term describing a person whose gender identity differs from the sex they were assigned at birth.