Reference no: EM131310871
1. By comparing a firm's liquidity ratios to a peer group's, managers can NOT gauge ________.
a. whether—in comparison to its competitors—the firm has more money in current assets for every dollar of short-term debt
b. whether —in comparison to its competitors—the firm has more cash and accounts receivable for every dollar of short-term debt
c. whether —in comparison to its competitors—the firm has more money in inventory than its competitors
d. whether—in comparison to its competitors—the firm needs more vacation time
2. Liquidity ratios indicate the degree to which a firm can ________.
a. satisfy its creditors in a timely fashion
b. generate sufficient profit from its assets
c. finance its assets
d. produce adequate dividends
3. The difference between the historic price a firm paid and its going price among current buyers and sellers is the difference between its ________.
a. book value and depreciation
b. market value and depreciation
c. market value and intrinsic value
d. book value and market value
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