By comparing a firms liquidity ratios to a peer groups


By comparing a firm's liquidity ratios to a peer group's, manager can NOT gauge

A. whether in comparison to its competitors - the firm has more money in current assets for every dollar of short-term debt.

B. whether - in imparision to its competitors - the firm has more cash and accounts receivable for every dollar of short-term debt

C. whether in comparision to its competitors - the firm has more money in inventory than its competitors

D. whether in cimparision to its competitors - the firm needs more vacation time.

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Financial Management: By comparing a firms liquidity ratios to a peer groups
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