Why is liability an important factor in any business?
Answers
Answered by
16
The importance of current liabilities is that they impose constraints on the cash flow of the company and make it important the company has adequate current assets to maintain liquidity. Thus, the difference between current assets and current liabilities is itself an important number, called working capital.
Answered by
15
Answer:
Explanation:
Liability is a very important factor in a business. ... Liabilities are paid for large expansions. Liabilities are the debt which occurs during the time of business operations.
Similar questions