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Which of the following is NOT true of liquidity ratios? The higher the liquidity...

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Accounting

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 short-term bills.
There are two commonly used ratios to measure liquidity-current 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 short-term obligations with short-term assets without putting the firm in financial
trouble.
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