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.
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Answer:
from being on the socail media too much and then they start to believe in that kind of stuff
Explanation:
1947 is when he was born.
Answer:
The correct answer is False.
Explanation:
Marginal cost or cost of production is the increase in the overall cost of production needed to be added to produce one additional item.
In the case given actually the marginal cost to be used in the capital budgeting for the current year will not only be the after-tax cost of debt but also the whole amount of the debt itself.
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