Solved

Which Statement Best Describes a Firm's Liquidity

Question 39

Multiple Choice

Which statement best describes a firm's liquidity?


A) It is often measured by a ratio of current assets to current liabilities.
B) It is not important to a company's life.
C) It is the ability of the firm to sell its products quickly.
D) It is a measurement of spontaneous financing.

Correct Answer:

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