216k views
0 votes
A company's liquidity is concerned with the relationship between long-term investments and long-term debt. True or False?

User Karadous
by
7.3k points

1 Answer

3 votes

Final answer:

Liquidity is concerned with a company's ability to convert its assets into cash, not the relationship between long-term investments and long-term debt.

Step-by-step explanation:

Liquidity refers to a company's ability to convert its assets into cash to meet its short-term obligations. It is not concerned with the relationship between long-term investments and long-term debt. Therefore, the statement is False. Liquidity is important for a company's financial stability and ability to handle its day-to-day expenses.

User YoBre
by
7.9k points