Measuring liquidity Flashcards by Zakariye Abdullaahi | Brainscape

Q

What is liquidity

A

Measure of a business’s ability to meet short term debts

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Q

What is current ratio

A

A measure of a business’ short term survival i.e its ability to met short term debts

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Q

What are liquid assets

A

Receivables and cash/cash equivalents

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