Question : With respect to the liquidity Ratio, which of the following statements is incorrect?

Option 1: “Liquidity” refers to the ability of the firm to meet its current liabilities.

Option 2: Liquidity is the ease with which assets may be converted into cash without loss.

Option 3: The liquidity ratios are also called 'long-term Solvency Ratios'.

Option 4: Short-term trade payables of the firm are primarily interested in the liquidity ratios of the firm.

Question : Liquidity refers to the ability of the firm to meet its ______________.

Option 1: Current Liabilities

Option 2: Non- Current Liabilities

Option 3: Fixed Assets

Option 4: Current Assets

Question : Which ratios provide information critical to the firm's long-term operation?

Option 1: Profitability 

Option 2: Solvency

Option 3: Activity

Option 4: Liquidity

Question : Which of the following statements is correct with respect to Creditors or Suppliers?

Option 1: Profitability of the firm in relation to investments.

Option 2: Short term solvency/liquidity of the concern.

Option 3: Effective utilization of its (firm's) resources.

Option 4: All of the above

Question : Which party is interested to know the short-term solvency position of a firm, i.e., the ability to meet its short-term liabilities?

Option 1: Creditors

Option 2: Management

Option 3: Shareholder and owners

Option 4:  None of the above