Which of the following statements is true?
A) Liquidity ratios measure a company's long-term ability to pay debt.
B) Solvency ratios measure a company's ability to repay current debt.
C) A high liquidity ratio generally indicates that a company has a greater ability to meet its current obligations.
D) Solvency ratios measure a company's ability to survive on a short-term basis.
Correct Answer:
Verified
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