Which of the following is the most useful in assessing short-term liquidity of a company?
A)Taxes payable
B)Retained earnings
C)Next period's sales
D)Prospective cash flows

Question

Quizplus · Accepted Answer

Prospective cash flows are the most useful in assessing short-term liquidity because they provide an estimate of the cash a company expects to receive and pay out in the near future, directly impacting its ability to meet short-term obligations.

Which of the Following Is the Most Useful in Assessing