Which of the following is true regarding liquidity ratios?

Multiple Choice

• Key examples of liquidity ratios include the equity ratio and return on shareholder's equity.

• None of the other alternatives are correct

• Liquidity ratios measure a company's short-term ability to collect from key customers.

• A company who makes excellent use of calculating and interpreting liquidity ratios should not have to calculate profitability ratios.

• Liquidity ratios measure a company's long-run ability to pay its current and maturing obligations.