what iss. liquidity ratio.
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In accounting the term liquidity is defined as the ability of a company to meet it's financial obligations as they come due.The liquidity ratio,then it is a computation that is used to measure a company's ability to pay it's short-term debts...it is followed by the acid ratio,and the cash ratio
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finance, the quick ratio, also known as the acid-test ratio is a type of liquidity ratio, which measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately.
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