Ceteris paribus, the quicker a company collects money from its sales, the greater its liquidity.

Name: Ceteris paribus, the quicker a company collects money from its sales, the greater its liquidity.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

Liquidity refers to the ability of a company to meet its short-term obligations, and having a faster collection of money from sales increases the amount of cash a company has on hand, making it easier to pay off those obligations.

Ceteris Paribus, the Quicker a Company Collects Money from Its