Question

Liquidity ratios are used :

a.

to measure a firms ability to meet short-cut obligations.

b.

to compare short term obligations to short-term resources available to meet these obligations.

c.

to obtain much insight into the present cash solvency of the firm and the firm's ability to remain solvent in the event of adversity.

d.

All of these

Answer: (d).All of these

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Q. Liquidity ratios are used :

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