Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following is the correct comment if a company's liquidity ratio is 2. Select one: A. It shows that the company is not

Which of the following is the correct comment if a company's liquidity ratio is 2.

Select one: A. It shows that the company is not in a risky position.

B. It means that the company's current assets are 2 % of its total assets. C. It means that the company can pay its short-term obligations by using its currents assets two times.

D. It shows that the company's cash and cash equivalents are enough to meet current liabilities.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of Financial and Managerial Accounting

Authors: Rich Jones, Mowen, Hansen, Heitger

1st Edition

9780538751292, 324787359, 538751290, 978-0324787351

More Books

Students also viewed these Accounting questions

Question

What is an interface? What keyword is used to define one?

Answered: 1 week ago