Business, 23.07.2019 01:20 lakenyahar

Which of the following ratios useful in assessing the liquidity position of a company?
incorrect a.
both defensive-interval ratio and return on stockholders' equity
b.
defensive-interval ratio only
c.
return on stockholders' equity only
d.
neither defensive-interval ratio nor return on stockholders' equity

Answers: 2

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Answer from: bryamp4268

The option B is a correct answer which is useful in assessing the liquidity position of a company.

Explanation:

Defensive Interval Ratio :

The defensive interval ratio (DIR) is that ratio which measures that by how many days can company operate without fixed assets or non current assets.

It is a type of liquidity ratio which shows that company can pay its current obligations without impacting long term obligations. It is always display in days.

Return on Stockholders' equity :

The return on stockholder equity is a profitability ratio which represents how much the company is earning profit during a particular period.

Liquidity ratio:

The liquidity ratio is that ratio which shows the relationship between current assets and current liabilities. It describes that how the company can meet its short term obligations with its available current assets.

Thus, by above explanation it is clear that the option B is a correct answer which is useful in assessing the liquidity position of a company.

Answer from: Quest

Many things could be possible

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

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Which of the following ratios useful in assessing the liquidity position of a company?
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