Liquidity refers to a company's ability to meet its short term obligations by a comfortable margin True or False
Answer:
The statement is:
True
Explanation:
Liquidity refers to company's ability to meet its current liabilties like accounts payable, short term notes payable, other current liabilities when due so that the operations runs smoothly.
As such the statement is true
Liquidity refers to a company's ability to meet its short term obligations by a comfortable margin...
Liquidity measures a company's ability: to meet its long-term financial obligations as they become due. to meet its short-term financial obligations as they become due. to make a profit in the short-run. to make a profit in the long-run.
Which of the following statements is true? Liquidity ratios measure a company's long-term ability to pay debt. Solvency ratios measure a company's ability to repay current debt. A high liquidity ratio generally indicates that a company has a greater ability to meet its current obligations. Solvency ratios measure a company's ability to survive on a short-term basis.
Liquidity ratios address the question of whether a company can meet its obligations over the long term, and financial leverage ratios address the question of whether a company can meet its obligations over the short term. True or False
Question 5 Short-term liquidity is a company's ability to shift current liabilities into long-term liabilities. a company's ability to meet current payments as they become due. a company's ability to turn accounts receivable into cash. current assets divided by current liabilities. a company's ability to sell inventory.
Liquidity is a financial institution's ability to meet its cash and collateral obligations without sustaining losses. Discuss why the degree of liquidity risk is different for different types of financial institutions (e.g., retail banks, life insurance companies, hedge funds). Discuss some of the risk management practices for liquidity risk.
Coke Pepsi Evaluate the liquidity (ability to meet short-term obligations) of these companies by calculating the current and quick ratios, by averaging their rests over the past 3 years. Make your comments from the perspective of a supplier or banker. (data in millions) Pepsico Net Operating Revenue/Net Sales 2016 2017 Average 2018 $ 62,799 $ 34,577 $ 9,804 Net Profit (Consolidated Net Income) $ 6,329 $ 26,450 $ 73,490 $ 11,199 $ 63,662 55% $ 34,862 12% $ 10,063 19%...
Which of the following statements are true? Check all that apply.Jing Foodstuffs Corporation has a better ability to meet its short-term liabilities than N&B Equipment Company.If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening.An increase in the quick ratio over time usually means that the company’s liquidity position is improving and that the company is managing its short-term assets well.Compared to N&B Equipment Company, Jing Foodstuffs Corporation has less liquidity and a lower...
The ability for a company to meet its liability obligations is important when assessing financial stability. Consider what high liability balances might indicate about a company and explain the pros and cons of this type of balance.
The ability for a company to meet its liability obligations is important when assessing financial stability. Consider what high liability balances might indicate about a company and explain the pros and cons of this type of balance. Provide real-world examples to illustrate your ideas.
The ability for a company to meet its liability obligations is important when assessing financial stability. Consider what high liability balances might indicate about a company and explain the pros and cons of this type of balance. Provide real-world examples to illustrate your ideas.