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What Is Liquidity? |
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Answer» Liquidity refers to a COMPANY's ability to pay its BILLS from CASH or from assets that can be turned into cash very QUICKLY. The QUICK ratio, also known as the acid-test ratio, is an indicator of a company's liquidity. Liquidity refers to a company's ability to pay its bills from cash or from assets that can be turned into cash very quickly. The quick ratio, also known as the acid-test ratio, is an indicator of a company's liquidity. |
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