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2 votes
True/False

Liquidity ratios are of particular importance to stockholders, but have little relevance for creditors.

1 Answer

6 votes

Answer:

False.

Step-by-step explanation:

Liquidity ratios are used by creditors to determine the ability of a company or debtor to pay off current short-term debt without any external help. They are thus, of great importance to creditors to show them the debtor's ability.

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