Liquidity ratios-company can generate cash to pay bills

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Reference no: EM131177993

True or False

1) Liquidity ratios indicate how fast a company can generate cash to pay bills.

2) Financial ratios are exclusively used for those areas of business that involve investment decisions.

3) The current ratio is a harder test of a firm’s liquidity than the quick ratio.

4) As the interest rate increases, the interest rate factor for the present value of a dollar decreases.

5) To determine the current value of six annual payments of $3,000 at 5%, you would use the present value of a dollar table.

6) As you go further into the future, a given amount will have an increased present value.

Reference no: EM131177993

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