Business Studies, asked by manashvi7972, 1 year ago

Short term liquidity and long term solvency

Answers

Answered by minu4515
0

Answer:

liquidity is a short term concept and solvency is a long term concept

liquidity found out by the using ratio like current ratio and quick ratio

solvency can be found by the using ratio debt to equity ration, interest cover ratio

liquidity is pretty low risk

solvency is a quiet a high risk

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