Final answer:
True. Current ratios and quick ratios are indicators of a company's liquidity and ability to meet its current obligations.
Step-by-step explanation:
True. Current ratios and quick ratios are indeed indicators of a company's liquidity. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio is calculated by dividing the sum of cash, cash equivalents, and marketable securities by current liabilities.
These ratios help analysts assess a company's ability to pay off its short-term obligations using its current assets. A higher current ratio and quick ratio indicate a higher level of liquidity, suggesting that the company is in a better position to meet its current liabilities.