A company's liquidity is concerned with the relationship between long-term investments and long-term debt.

Question

Quizplus · Accepted Answer

A company's liquidity is concerned with its ability to meet short-term obligations and have enough cash on hand for day-to-day operations. It is generally measured by ratios such as the current ratio and quick ratio, which look at a company's current assets and liabilities. Long-term investments and debt are more relevant to a company's solvency and financial stability.

A Company's Liquidity Is Concerned with the Relationship Between Long-Term