Which of the following statements are true? Check all that apply. Compared...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Which of the following statements are true? Check all that apply. Compared to Pellegrini Southern Inc., Liukin Holdings Inc. has less liquidity and a relatively greater reliance on outside cash flow to finance its shortterm obligations. If a companys current liabilities are increasing faster than its current assets, the companys liquidity position is weakening. If a company has a quick ratio of less than but a current ratio of more than and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its shortterm obligations. Liukin Holdings Inc. has a better ability to meet its shortterm liabilities than Pellegrini Southern Inc. An increase in the current ratio over time always means that the companys liquidity position is improving.
Which of the following statements are true? Check all that apply.
Compared to Pellegrini Southern Inc., Liukin Holdings Inc. has less liquidity and a relatively greater reliance on outside cash flow to finance its shortterm obligations.
If a companys current liabilities are increasing faster than its current assets, the companys liquidity position is weakening.
If a company has a quick ratio of less than but a current ratio of more than and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its shortterm obligations.
Liukin Holdings Inc. has a better ability to meet its shortterm liabilities than Pellegrini Southern Inc.
An increase in the current ratio over time always means that the companys liquidity position is improving.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.