A low liquidity ratio means that
A)you have very few debts.
B)you will not likely have trouble paying your monthly bills.
C)you probably will have trouble paying your monthly bills.
D)you have many liquid assets.

Question

Quizplus · Accepted Answer

A low liquidity ratio means that you have fewer liquid assets (cash, equivalents, or assets that can be quickly converted to cash) to cover your current liabilities (bills that need to be paid within a year). This indicates that you may have trouble paying your monthly bills as you do not have enough cash on hand.

A Low Liquidity Ratio Means That