Liquidity is generally measured by a company's ability to pay its short-term obligations using its short-term assets.

Name: Liquidity is generally measured by a company's ability to pay its short-term obligations using its short-term assets.
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Liquidity ratios measure a company's ability to meet short-term obligations using short-term assets such as cash, accounts receivable, and inventory. Examples of liquidity ratios include the current ratio and quick ratio.

Liquidity Is Generally Measured by a Company's Ability to Pay