McqMate
| Q. |
Which of the following statements about liquidity ratios is true? |
| A. | the higher the current ratio, the more likely a firm is able to pay its short-term obligations. |
| B. | the lower the quick ratios relative to the current ratio, the safer a firm is in terms of liquidity. |
| C. | the ratio of net working capital to total assets always lies between 0 and 1. |
| D. | relatively high current ratios are usually a sign of efficient working capital management. |
| Answer» A. the higher the current ratio, the more likely a firm is able to pay its short-term obligations. | |
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