Accounting Dictionary
Liquidity Ratios
These are the ratios that measure a company’s ability to pay its bills.
Some liquidity measures are current ratio, quick ratio, and working capital. These measures try to ascertain whether a company has enough current assets that can be quickly turned into cash to pay bills.
https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/liquidity-ratios/
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