Which of the following statements is most accurate?

Which of the following statements is most accurate?



A.) Coverage ratios also shed light on the "liquidity" of these current ratios.
B.) Receivable- and inventory-based activity ratios also shed light on the "liquidity" of these current assets.
C.) Receivable- and inventory-based activity ratios also shed light on the firm's use of financial leverage.
D.) Liquidity ratios also shed light on the firm's use of financial leverage.







Answer: B


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