The ability of a business to pay obligations that are expected to become due within the next year is called
A) leverage.
B) liquidity.
C) profitability.
D) solvency.

Name: The ability of a business to pay obligations that are expected to become due within the next year is called A) leverage. B) liquidity. C) profitability. D) solvency.
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Question

Quizplus · Accepted Answer

Liquidity refers to a business's ability to meet its short-term obligations, such as paying bills and covering operating expenses.

The Ability of a Business to Pay Obligations That Are