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 solvency

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 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 balance sheet
b. comparative balance sheet
c. segmented balance sheet
d. common-size balance shoot

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