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yuradex [85]
1 year ago
15

Computing liquidity ratios is ________ but interpreting them is ________. a. complex; even more complex b. complex; more straigh

tforward c. straightforward; more complex d. none of these
Social Studies
1 answer:
kow [346]1 year ago
6 0

Computing liquidity ratios is <u>straightforward</u> but interpreting them is <u>more</u> <u>complex</u>.

Liquidity ratios are used to measure a company's ability in order to pay debt obligations and its margin of safety for the calculation of metrics, this includes the current ratio, operating cash flow ratio, and quick ratio.

Creditors and investors interpret the liquidity ratios. These creditors and investors like to see high liquidity ratios, such as two or three. So when the ratio is the higher, the more likely a company is able to pay its short-term bills.

Thus, when a liquidity ratio of a company is less than one it means that the company is facing a negative working capital and is experiencing a liquidity crisis.

Hence, option C is correct.

To learn more about liquidity ratios here:

brainly.com/question/14805679

#SPJ4

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Answer:

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This means that not necessarily the wealth would cause marriages to report higher levels of happiness or satisfaction. This would imply that there is an inverse relationship between two variables - when one variable decreases, the other increases. So to the contrary, it would mean the opposite. Having less money would favor marital satisfaction.

It is so believed that money issues are important variables so, they should be reconsidered. In the case as stated having more money turns into less satisfaction of the pair.

A example that is similar to this as a negative correlation, is the birth of children, and mariage, since the condition creates stress that the new creature poses to the relationship  between the pair, that was often better treated.

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