alleryStart learning →Which three liquidity ratios are brought into this discussion?
ACurrent, quiet, cost
BCurved, quick, cash
CCentral, quick, cost
DCurrent, quick, cash
Answer & Solution
Correct answer: D. Current, quick, cash
1. Liquidity ratios ask whether short-term bills can be met.
2. Three of them are carried over from the ratio analysis material.
3. Those ratios are the current ratio, the quick ratio, and the cash ratio.
4. Each one is stricter than the last about what counts as available.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 19 'The Importance of Trade Credit and Working Capital in Planning', sections 19.1-19.5_
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