Multiple Choice
Selected data from the financial statements are provided below:
-Refer to Rainsoft Company. Which of the following statements is true regarding the company's liquidity?
A) Based on the current ratio and operating cash flow ratio, the company appears to be in a worse position to pay its current obligations at the end of 2021 compared to 2020.
B) The quick ratio decreased from 2020 to 2021.
C) The operating cash flow ratio increased from 2020 to 2021.
D) Based on the quick ratio and cash ratio, the company appears to be in a better position to pay its current obligations at the end of 2021 compared to 2020.
Correct Answer:
Verified
Correct Answer:
Verified
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