A company's ability to meet its needs for cash in the short terms is called ________.
A)liquidity
B)profitability
C)materiality
D)due professional care

Question

Quizplus · Accepted Answer

Liquidity refers to a company's ability to meet its short-term cash needs, including paying off its debts and covering its day-to-day expenses. Profitability refers to a company's ability to generate profit over an extended period of time, and materiality refers to the importance of a financial statement item to a company's overall financial picture. Due professional care refers to the level of care and diligence expected of a professional in their work.

A Company's Ability to Meet Its Needs for Cash in the Short