The ability to pay bills when due and to meet unexpected needs for cash most clo

Question

The ability to pay bills when due and to meet unexpected needs for cash most closely describes cash flow adequacy long-term solvency liquidity profitability Which of the following situations severely limits the use of industry norms as standards of comparison? the fact that little information exists on industry norms the existence of conglomerates the presentation of segmented Information a downward turn in the economy A balance sheet that displays only component percentages is called condensed balance sheet comparative balance sheet segmented balance sheet common-size balance sheet

Explanation / Answer

4) option c

Liquidity means that the company is able to pay bills when due and meet needs for cash

5)option a

The fact that little information exists on industry norms since no information is available so industry norms cannot be used

6)d) common size balance sheet

Or commonly referred to as vertical analysis where each item is stated as percentage of total assets

4) option c

Liquidity means that the company is able to pay bills when due and meet needs for cash

5)option a

The fact that little information exists on industry norms since no information is available so industry norms cannot be used

6)d) common size balance sheet

Or commonly referred to as vertical analysis where each item is stated as percentage of total assets

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