STEP: $1$ of $2$

Which group of lenders would put greater emphasis on a firm's liquidity ratio when evaluating a potential borrower?

Long$-$term lenders

Short$-$term lenders

One of the most important assumptions behind the calculation of quick ratio is that:

the firm's accounts receivables can be collected and converted into cash within the time period for which credit was granted.

the firm's accounts receivables will be collected late $($after the expiration of the credit period$)$ or are uncollectible.

the firm's inventories are highly liquid and can be sold quickly with minimal loss of value to assist in the settlement of the firm's financial

obligations.