Which of the following is NOT true of liquidity ratios? The higher the liquidity...
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Which of the following is NOT true of liquidity ratios? The higher the liquidity ratios, the more liquid the firm and the better its ability to pay its shortterm bills. There are two commonly used ratios to measure liquiditycurrent ratio and quick ratio. For manufacturing firms, quick ratios will tend to be much larger than current ratios. They measure the ability of a firm to meet shortterm obligations with shortterm assets without putting the firm in financial trouble. 
Which of the following is NOT true of liquidity ratios?
The higher the liquidity ratios, the more liquid the firm and the better its ability to pay its shortterm bills.
There are two commonly used ratios to measure liquiditycurrent ratio and quick ratio.
For manufacturing firms, quick ratios will tend to be much larger than current ratios.
They measure the ability of a firm to meet shortterm obligations with shortterm assets without putting the firm in financial
trouble.
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