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The Liquidity Ratio That Indicates the Extent to Which Short-Term

Question 67

Multiple Choice

The liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short-term liabilities is referred to as the


A) Current ratio.
B) Return on investment (ROI) .
C) Debt-equity ratio.
D) Leverage ratio.
E) Profitability ratio.

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