1.20 r c. 1.44 c d-4.40 1 points QUESTION 10 Which of the following is a correct statement? (LO 6, LO 7) 1. a Liquidity is the ability to repay liabilities in the long run. D.Solvency describes the ability to generate sufficient short-term cash flows to pay obligations as they become due. C C A low current ratio suggests that the company having difficulty paying its short-term obligations. An operating cycle is defined as the average time it takes a business to convert inventory to accounts receivable. d