Question

Liquidity refers to: Select one: A. A company’s ability to generate sales from use of its...

Liquidity refers to: Select one:

A. A company’s ability to generate sales from use of its assets B. A company’s operating cycle C. A company’s amount of financial leverage D. A company’s ability to meet its debt obligations E. A company’s cash availability

Homework Answers

Answer #1

Please feel free to ask doubts in the comment section and give it a thumbs up if you liked the answer. Have a good day

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1)liquidity measures: .the comoany's ability to generate profits on inventory sold. .the company's ability to return...
1)liquidity measures: .the comoany's ability to generate profits on inventory sold. .the company's ability to return cash to stockholders. . the company's ability to pay current obligations using current assets. .the company's ability to efficiently collect cash from customers. 2)Vertical anslysis refers to: . exoressing each items in a financial statement as its trend over time. . expressing each items in a financial statement in order of highest amount to lowest amount. . expressing each item in a financial statement...
1A. A banker mainly uses financial statement ratio analysis to determine the company’s a. ability to...
1A. A banker mainly uses financial statement ratio analysis to determine the company’s a. ability to generate cash flows to service its debt. b. fair value of assets pledged as collateral c. ability to generate income to pay principal and interest amounts. 1B. Leverage refers to the increase in return on equity that a company can earn (over and above its return on assets) as a result of borrowing money from debt holders. As a company continues to borrow from...
q 1. Liquidity refers to Select one: a. the ease of converting a financial resource into...
q 1. Liquidity refers to Select one: a. the ease of converting a financial resource into cash without a loss in value. b. the amount of insurance coverage a person has. c. a positive net cash flow to cover unexpected expenses. d. a person's inability to pay his or her debt or other obligations. Question 2 Balance sheet assets should be valued at Select one: a. insured value. b. fair market value. c. original purchase price. d. replacement value. Question...
11.13 The statement of cash flows should not be used to evaluate an entity’s ability to:...
11.13 The statement of cash flows should not be used to evaluate an entity’s ability to: LO5 a. earn profit. b. generate future cash flows. c. pay dividends. d. meet obligations. 11.14 Free cash flow provides an indication of a company’s ability to: LO5 a. generate profit. b. generate cash to pay dividends. c. generate cash to expand investment. d. both (b) and (c). 11.15 Which of the following provides a useful comparison with the profit margin? LO5 a. Capital...
The creditors of a company analyse financial statements so that they can focus on A. the...
The creditors of a company analyse financial statements so that they can focus on A. the company's amount of debt. B. the company's ability to generate sufficient cash flows to meet all legal obligations first and still have sufficient cash flows to meet debt repayment and interest payments. C. the company's ability to meet its short-term obligations. D. All of the above.
Which of the following may be true of debt covenants? A. Limit the issuance of additional...
Which of the following may be true of debt covenants? A. Limit the issuance of additional debt senior to the obligation. B. Specify minimum levels of selected financial ratios. C. Specify minimum levels of earnings coverage. D. All of the above. All other things being equal, all of the following actions will increase financial leverage except: A. Repurchase stock B. Sell accounts receivable at face value C. Issue more bonds D. Pay higher dividends Which statement is TRUE? A.    Liquidity...
37. Which of the following ratio is useful in assessing the liquidity (i.e., the ability of...
37. Which of the following ratio is useful in assessing the liquidity (i.e., the ability of a company to pay its current liabilities using current assets) of a company? Select one: a. debt ratio b. current ratio c. inventory turnover rate d. gross margin ratio
Operating leverage refers to: Select one: a. the relationship between product mix and costs b. the...
Operating leverage refers to: Select one: a. the relationship between product mix and costs b. the mix between sales and variable costs. c. the mix between fixed and variable costs. d. the mix between sales and fixed costs.
__________ are used to determine how well a company is managing its assets. Select one: a....
__________ are used to determine how well a company is managing its assets. Select one: a. Activity ratios b. Leverage ratios c. Liquidity ratios d. Market ratios e. Probability ratios
Which of the following is most accurate regarding stored and purchased liquidity? Select one: a. Stored...
Which of the following is most accurate regarding stored and purchased liquidity? Select one: a. Stored Liquidity is using interbank markets for short-term loans b. Larger Financial Institutions(FIs) are more likely to use purchased liquidity than smaller FIs c. Purchased liquidity involves liquidating cash stores and selling existing assets d. When managers utilize stored liquidity to fund deposit drains, the size of the balance sheet is reduced and its composition is unchanged
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT