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Financial Accounting Intro Concepts Meth/Uses

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 12Q

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1. The following is the most appropriate reason that short-term creditors are very
interested in the Company's liquidity is because
a. Company liquidity is the total wealth of the company
b. Liquidity is a measure of the Company's ability to earn profits
c. Liquidity is the level of a company's ability to pay off all its obligations
d. Company liquidity is a guarantee of the company's ability to pay off short-term
obligations

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