Which One of the Following Statements Is True

Multiple Choice

Which one of the following statements is true?

A) Liquidity refers to a company's ability to pay its current and long-term debts.
B) A company is always considered a serious credit risk if its quick ratio is below one.
C) All other things being equal,the existence of a line of credit enhances the ability of a company to meet its short-term obligations.
D) Liquid assets include all current assets.