What do liquidity ratios measure? (a) A firms ability to meet cash needs as they arise. (b)

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What do liquidity ratios measure?

(a) A firm’s ability to meet cash needs as they arise.

(b) The liquidity of fixed assets.

(c) The overall performance of a firm.

(d) The extent of a firm’s financing with debt relative to equity.

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Understanding Financial Statements

ISBN: 9781292101552

11th Global Edition

Authors: Lyn Fraser, Aileen M. Ormiston

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