Ceteris paribus, the quicker a company the company collects money from its sales the greater its liquidity.

Name: Ceteris paribus, the quicker a company the company collects money from its sales the greater its liquidity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Liquidity refers to a company's ability to meet its short-term financial obligations. If a company collects money from its sales more quickly, it will have more cash on hand to pay off its debts and other obligations, which increases its liquidity.

Ceteris Paribus, the Quicker a Company the Company Collects Money