The ________ of a business firm is measured by its ability to satisfy its short-term obligations as they come due.
A) activity
B) liquidity
C) debt
D) profitability

Question

Quizplus · Accepted Answer

Liquidity measures a company's ability to meet its short-term obligations with its current assets. It assesses whether a business has enough cash or other assets that can quickly be converted into cash to pay off its current liabilities. A company that is highly liquid can pay its bills and other financial obligations without facing financial difficulties or default.

The ________ of a Business Firm Is Measured by Its