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What do the liquidity ratios indicate? The ability of companies to honor their commitments The ability of companies to generate profits The abilit...

What do the liquidity ratios indicate?

The ability of companies to honor their commitments
The ability of companies to generate profits
The ability of companies to invest in new projects
The ability of companies to reduce their costs
a) Only I is correct
b) Only II is correct
c) Only III is correct
d) I is correct

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The liquidity ratios indicate the ability of companies to honor their commitments. Therefore, the correct answer is option a) Only I is correct.

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