Multiple Choice
What is the difference between a liquidity ratio and a leverage ratio?
A) Liquidity ratios do not include debt while leverage ratios include debt.
B) Liquidity has a short-term focus while leverage has a long-term focus.
C) Liquidity ratios use balance sheet accounts while leverage ratios use the income statement.
D) There is no difference.
Correct Answer:
Verified
Correct Answer:
Verified
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