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Exam CVA topic 1 question 153 discussion

Actual exam question from NACVA's CVA
Question #: 153
Topic #: 1
[All CVA Questions]

Which of the following ratios demonstrate the companys ability to meet its current obligations? These can help resolve one of the common controversies in business valuation: whether the company has any assets in excess of those required for its operating needs or, conversely, whether its assets fall short of its needs.

  • A. Liquidity ratios
  • B. Activity ratios
  • C. Leverage rations
  • D. Income statement coverage ratios
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Suggested Answer: A 🗳️

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