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Which of the following ratios are measures of a firms short-term liquidity? 1. Cash coverage ratio. II. Interval measure. II
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Answer #1

Options I, II and IV are correct

Cash coverage ratio, Interval measure and Quick ratio measure a firm's short term liquidity.

Cash coverage ratio measures an organizatiion's ability to pay its current liabilities with the available cash.

Interval measure calciulates how many days a company can survive by relying on currentb assets.

Quick ratio measures the ability of the firm to pay its current liabilities from highly liquid assets.

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