Liquidity ratios indicate the degree to which a firm can, Financial Management

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Liquidity ratios indicate the degree to which a firm can

A. satisfy its creditors in a timely fashion

B. generate sufficient profit from its assets

C. finance its assets

D. produce adequate dividends

2. Financial ratios

A approach 1 if the results are promising

B. facilitate comparisons across time and distance

C. can be used as assumptions in preparing business plans, identify weaknesses, and facilitate comparisions

D. are not used by managers to understand the performance with in their own firm.

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Financial Management: Liquidity ratios indicate the degree to which a firm can

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