Total asset turnover commonly measures the liquidity of a firm's ...

[jwb375]

Total asset turnover commonly measures the liquidity of a firm's total assets.
 
  Indicate whether the statement is true or false

Question 2

The purpose of the debt covenant that requires maintaining a minimum level of net working capital is to ________.
 
  A) protect the lender by controlling the risk and marketability of the borrower's security investment alternatives
  B) limit the amount of fixed-payment obligations
  C) ensure a cash shortage does not cause an inability to meet current obligations
  D) limit the annual cash dividends paid by the firm

[cadimas]

Answer to Question 1

FALSE

Answer to Question 2

C

[jwb375]

TYSM

[phuda]

Thanks for the timely response, appreciate it