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Vladimir79
5 days ago
10

North Bank is analyzing Belle Corp.'s financial statements for a possible extension of credit. Belle's quick ratio is significan

tly better than the industry average. Which one of the following factors should North consider as a possible limitation of using this ratio when evaluating Belle's creditworthiness?
A. Fluctuating market prices of short-term investments may adversely affect the ratio.
B. Increasing market prices for Belle's inventory may adversely affect the ratio.
C. Belle may need to sell its available-for-sale investments to meet its current obligations.
D. Belle may need to liquidate its inventory to meet its long-term obligations.
Business
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