BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It pertains to the firm’s ability to pay any immediate and incoming cash disbursements
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Liquidity
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Asset Utilization
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Debt-Utilization
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Profitability
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Explanation:
Detailed explanation-1: -LIQUIDITY-Pertains to the firm’s ability to pay any immediate and incoming cash disbursements.
Detailed explanation-2: -Share. Liquidity definition. Liquidity is a company’s ability to convert assets to cash or acquire cash-through a loan or money in the bank-to pay its short-term obligations or liabilities.
Detailed explanation-3: -The three types of liquidity ratios are the current ratio, quick ratio and cash ratio.
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