A company is said to be liquid if it has sufficient cash to pay currently maturing debts.

Question

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A company is considered liquid if it has enough cash or assets that can be easily turned into cash to meet its current obligations or debts that are due in the near future. This means that it can pay off its short-term debts without having to rely on external financing or selling long-term assets. Therefore, if a company has sufficient cash to pay currently maturing debts, it is considered to be liquid.

A Company Is Said to Be Liquid If It Has