The short-term liquidity of a company:
A)is only of concern to investors, not creditors, of a company.
B)is determinable by looking at debt to equity ratio.
C)depends largely upon prospective cash flows.
D)is determinable by calculating cash to current liabilities ratio.

Question

Quizplus · Accepted Answer

Short-term liquidity is largely dependent on prospective cash flows, as it indicates the company's ability to meet its short-term obligations.

The Short-Term Liquidity of a Company