Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 3. which of the following statements regarding liq

3. Which of the following statements regarding liquidity and profitability is not true? a. If a business...

80.2K

Verified Solution

Question

Accounting

3. Which of the following statements regarding liquidity andprofitability is not true?

a. If a business is unable to pay its debts as they come due, itis operating unprofitably b. In order to survive in the long run, abusiness must both remain liquid and operate profitably c. Abusiness may operate profitably, yet be unable to meet itsobligations d. A business may be liquid, yet operate unprofitablyfor several years

Answer & Explanation Solved by verified expert
4.0 Ratings (601 Votes)
Correct answer is Option a If a business is unable to pay its debts as they come due it is operating unprofitably Please hit LIKE button if this helped For any further explanation please put your query in comment will get back    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

ulz TB MC Qu 10 68 Algo Kler Company Issued Kler Company Issued 580 000...

Basic Math
1.2K views

How can Chi Square test for independence be used to evaluate test re-test reliability?

Basic Math
1.2K views

The Pew Internet and American Life Project reports that young people ages 12-17 send a mean...

Finance
1.2K views

?The annual sales for? Salco, Inc. were $4.46 million last year. The? firm's end-of-year balance sheet was...

Biology
1.2K views

Mendel accounted for the observation that traits which had disappeared in the F1 generation reappeared...

Basic Math
1.2K views

What is the purpose of the QUADRATIC FORMULA?A Determine the distance between two pointsB Calculate...

Basic Math
1.2K views

All Harold's ties are red except for two. All Harold's ties are blue except for...

Accounting
1.2K views

Each time inventory is sold, two transactions occur: revenues (sales) are recorded, and inventory is...

Accounting
1.2K views

Coop Inc. owns 37% of Chicken Inc., both Coop and Chicken are corporations. Chicken pays...

Accounting
1.2K views

Thermal Systems, a company that specializes in odor control for wastewater treatment plants, made deposits...

Accounting
1.2K views

Year of Education Average Weekly Income (Y) 10 13 16 BIS Data 18 $604 Mostly...

Accounting
1.2K views

Assume Martin's Moving & Storage Ltd. (MMS) of Regina, Saskatchewan, incurred the following costs in...