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I think most of my answers are correct but I mainly need help with the last portion A liquid asset can be converted quickly to
I think most of my answers are correct but I mainly need help with the last portion
A liquid asset can be converted quickly to cash with little sacrifice in its value. Which of the following asset classes is generally considered to be the least liquid? Money market instruments Real estate Treasury bills The most recent data from the annual balance sheets of Free Spirit Industries Inc. and Jing Foodstuffs Inc. are as follows: Free Spirit Industries Inc.'s quick ratio is 0.7468, and its current ratio is 1.3336; Jing Foodstuffs Inc.'s quick ratio is 0.9292, and its current ratio is 1.6592. Which of the following statements are true? Check all that apply. Free Spirit Industries Inc. has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than Jing Foodstuffs Inc.. If a company's current liabilities are increasing faster than its current assets, the company's liquidity position is weakening. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations. Free Spirit Industries Inc. has a better ability to meet its short-term liabilities than Jing Foodstuffs Inc. An increase in the current ratio over time always means that the company's liquidity position is improving
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