The liquidity ratios or shortterm solvency ratios measure th

The liquidity ratios or short-term solvency ratios measure the firm\'s ability to fulfill tsshort-term commitments out of current or liquid assets. O True O False

Solution

The answer is true

The formula for calculating Liquidity ratio is

   =Cash equalents+marketable securities+accounts recievable / Current liablities

 The liquidity ratios or short-term solvency ratios measure the firm\'s ability to fulfill tsshort-term commitments out of current or liquid assets. O True O Fa

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