Which of the following is NOT true of liquidity ratios?

There are two commonly used ratios to measure liquidity$-$current ratio and quick ratio.

The higher the liquidity ratios, the more liquid the firm and the better its ability to pay its short$-$term bills.

They measure the ability of a firm to meet short$-$term obligations with short$-$term assets without putting the firm in financial

trouble.

For manufacturing firms, quick ratios will tend to be much larger than current ratios.