Which statement is true:
a. Liquidity is viewed as the company's ability to meet its short term and long term obligations.
b. Liquidity is generally measured by the company's ability to pay its short term obligations using its short assets.
c. The current ratio is a superior tool in assessing short-term liquidity.
d. If a company has a current ratio greater than one then there is no chance it will go bankrupt in the next year.
Answer: B
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