Ratio Analysis

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Ratio Analysis

There are several groups of ratios most decision makers and analysts use to examine different aspects of a company’s performance. Based on the descriptions of ratios listed, identify the relevant category of ratios.

•	Ratios that help determine whether a company can access its cash and pay its short-term obligations are called___________ratios.

Financial-Management Cengage Mindtap

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Answer 1

Answer #1

liquidity

answered by: Hauser

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Answer 2

Answer #2

Liquidity ratios help you analyze the liquidity position of the company—that is, whether the firm can pay off its short-term liabilities and still smoothly run its operations. Examples of liquidity ratios include the current ratio and the quick, or acid test, ratio.

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Answer 3

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