Question
Which of the following statements regarding liquidity and profitability is not true? If a business is unable to pay its debts as they come due,
Which of the following statements regarding liquidity and profitability is not true?
If a business is unable to pay its debts as they come due, it is operating unprofitably.
A business may be liquid, yet operate unprofitably for several years.
A business may operate profitably, yet be unable to meet its obligations.
In order to survive in the long-run, a business must both remain liquid and operate profitably.
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Managerial Accounting
Authors: Ray H Garrison, Alan Webb, Theresa Libby
11th Canadian Edition
1259275817, 978-1259275814
