Although a full liquidity analysis requires the use of a cash budget, the current and quick ratios provide fast and easy-to-use measures of a firm's liquidity position.

Question

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The statement is true. While a cash budget provides a comprehensive analysis of a firm's liquidity, the current and quick ratios can give a quick snapshot of a firm's ability to meet short-term obligations.

Although a Full Liquidity Analysis Requires the Use of a Cash