The term that is closely related to the concept of liquidity is:
A) Financial condition.
B) Interperiod equity.
C) Financial position.
D) Economic condition.

Question

Quizplus · Accepted Answer

Liquidity is a measure of a company's ability to meet its short-term obligations. Financial position refers to the overall financial health of a company, which includes liquidity as well as solvency, profitability, and other factors. Therefore, financial position is closely related to the concept of liquidity.

The Term That Is Closely Related to the Concept of Liquidity