The ability to meet short-term obligations and to efficiently generate revenues is called:________.

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02-08-2022
Business

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The ability to meet short-term obligations and to efficiently generate revenues is called:________.

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vipinkumar69547 vipinkumar69547 · Answer 1 · 2022-08-10T05:40:52+02:00

The ability to meet short-term obligations and efficiently generate revenues is called Liquidity.

Liquidity is the ease or speed with which money can be raised to meet short-term financial responsibilities such as paying bills. Stocks and bonds, as well as other easily tradable assets, are regarded as liquid assets.

A company's liquidity can be determined by how well it can meet its short-term obligations, particularly those that are due in less than a year. What the business owes in comparison to what it owns is typically represented as a ratio or percentage. You can gain insight into the company's financial situation by using these metrics.

The liquidity status of a business is primarily affected by two factors. The first factor is its capacity to transform assets into cash to cover its present liabilities (short-term liquidity). Its debt-carrying capability is the second.

To learn more about Liquidity refer to:

https://brainly.com/question/13646882

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