A firm has an interval measure of 48.This means that the firm has sufficient liquid assets to do which one of the following?
A)pay all of its debts that are due within the next 48 hours
B)pay all of its debts that are due within the next 48 days
C)cover its operating costs for the next 48 hours
D)cover its operating costs for the next 48 days
E)meet the demands of its customers for the next 48 hours

Question

Quizplus · Accepted Answer

An interval measure of 48 means that the firm has sufficient liquid assets to cover its operating costs for the next 48 days. It does not necessarily mean that it can pay all of its debts that are due within the next 48 days, as some debts may have shorter payment terms than that.

A Firm Has an Interval Measure of 48