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Which of the Following Is True of Liquidity

Question 77

Multiple Choice

Which of the following is true of liquidity?


A) Liquidity metrics include assets turnover, price-earnings ratio, and dividend yield.
B) Liquidity is the ability to convert assets to cash.
C) Liquidity is the ability of a company to generate net income related to its invested assets.
D) Liquidity metrics include debt ratio, times interest earned, and ratio of liabilities to stockholders' equity.

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