4 The ability to pay bills when due and to meet unexpected needs for cash most closely describes a cash flow adequacy b long term solvency c liquidity d profitability 5 Which of the following situations severely limits the use of industry norms as standards of comparison a the fact that little Info...

1 Option c Liquidity means that the company is able to pay bills when d ...

4. The ability to pay bills when due and to meet unexpected needs for cash most closely...

Question:

4. The ability to pay bills when due and to meet unexpected needs for cash most closely describes
a. cash flow adequacy
b. long-term
c. liquidity
d. profitability
5. Which of the following situations severely limits the use of industry norms as standards of comparison?
a. the fact that little Information exists on industry norms
b. the existence of conglomerates
c. the presentation of segmented Information
d. a downward turn in the economy
6. A balance shoot that displays only component percentages is called
a. condensed comparative segmented common-size balance shoot
Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...