The ability to pay bills when due and to meet unexpected needs for cash most closely describes
A) liquidity.
B) long-term solvency.
C) profitability.
D) cash flow adequacy.

Question

Quizplus · Accepted Answer

Liquidity refers to having enough cash or assets that can quickly and easily be converted into cash to meet immediate financial obligations. This includes paying bills when due and being able to handle unexpected cash needs.

The Ability to Pay Bills When Due and to Meet