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
Answer:
Prior to independence on March 6, 1957, Ghana was called the Gold Coast. The earliest Europeans to set foot on the land were the Portuguese in the 15th century (1471). On their arrival, they found so much gold between the rivers Ankobra and the Volta that they named the area “da Mina”, meaning “The Mine”.
Explanation:
<span>Leslie Stahl summarize the "conundrum" of the minimum-21 drinking law by </span>proposing that the "conundrum" or confusing problem is that a law that has diminished highway deaths might add to an expansion in off roadway deaths.
The example that best illustrates checks and balances is A) The Supreme Court rules that a law passed by Congress is unconstitutional.
The principle of checks and balances ensures that one branch of the government does not have an excess of power over any of the others.
In this example, Congress passed a law - however the Supreme Court ruled that it was unconstitutional, and therefore they struck it down.
This principle helps to balance out the government so that one branch does not have any more say than the others.
Answer: the correct answer is they are examples of conflict theory in action.
