Multiple Choice
Which of the following statements about liquidity and solvency ratios is correct?
A) Unlike solvency ratios,liquidity ratios relate to the company's long-run survival.
B) Both liquidity ratios and solvency ratios measure a company's ability to meet its financial obligations.
C) Liquidity ratios include the return on equity ratio and the times interest earned ratio.
D) Solvency ratios include the current ratio and the net profit margin ratio.
Correct Answer:
Verified
Correct Answer:
Verified
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