A strong liquidity position means that
A) the firm is able to meet its short-term obligations.
B) the firm uses little debt in its capital structure.
C) the firm pays out a large portion of its net income in the form of dividends.
D) the firm pays its creditors on time.

Question

Quizplus · Accepted Answer

A strong liquidity position indicates that a firm has sufficient liquid assets to meet its short-term obligations as they come due.

A Strong Liquidity Position Means That