Multiple Choice
Which statement is not correct?
A) Low liquidity ratios are not desirable
B) High liquidity ratios are not necessarily desirable
C) Low liquidity ratios can indicate liquidity problems
D) A current ratio of greater than 2:1 means that an entity must have sufficient liquidity to pay its debts as they fall due
Correct Answer:
Verified
Correct Answer:
Verified
Q38: If year one equals $800,year two equals
Q39: The ratios used to evaluate the liquidity
Q40: Horizontal analysis of financial statements includes the<br>A)calculation
Q41: The return on assets is a profitability
Q42: In a vertical analysis of an income
Q44: Capital structure ratios are also known as:<br>A)profitability
Q45: Morgan Trading Pty Ltd has the
Q46: The asset turnover ratio is calculated by
Q47: If average inventory is $49 500,credit sales
Q48: Profit is $109 000,after deducting interest of