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.

Question

Quizplus · Accepted Answer

This statement is incorrect. Liquidity ratios address the question of whether a company can meet its short-term obligations, while financial leverage ratios address the question of whether a company can meet its long-term obligations.

Liquidity Ratios Address the Question of Whether a Company Can