Liquidity refers to
A) the ability of a company to earn a profit.
B) a comparison of account balances to a single line item.
C) the ability of a company to pay its debts when they fall due.
D) none of the above

Question

Quizplus · Accepted Answer

Liquidity refers to the ability of a company to pay its debts when they fall due. It is a measure of a company's ability to meet its short-term obligations and is important for assessing a company's financial health and stability.

Liquidity Refers to