The primary purpose of the liquidity ratios is to determine
A. how much working capital is tied up in inventory.
B. the relative level of short-term debt.
C. how well a firm is able to pay off short-term obligations.
D. more than one of the above.
Answer:C
The primary purpose of the liquidity ratios is to determine
A. how much working capital is tied up in inventory. B. the relative level of short-term debt. C. how well a firm is able to pay off short-term obligations. D. more than one of the above.