Liquidity is the ability of a company to pay its debts when due.

Name: Liquidity is the ability of a company to pay its debts when due.
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Question

Quizplus · Accepted Answer

Liquidity refers to the ability of a company to meet its short-term obligations, including debts that are due within a year. Therefore, a company with good liquidity is capable of paying off its creditors on time, which helps maintain its financial stability and credibility.

Liquidity Is the Ability of a Company to Pay Its