Liquidity of a Company Is Generally Defined as a Measure

question 31

Multiple Choice

Liquidity of a company is generally defined as a measure of:

• A)the ability of a company to pay its employees in a timely manner.
• B)the ability to pay interest and principal on all debt.
• C)the ability to pay dividends.
• D)the ability to pay current liabilities.

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Definitions:

Octagon

A geometric figure with eight sides and eight angles.

Gazebo

A freestanding open structure, often found in gardens and parks, used for relaxation or entertainment.

Security Deposit

The money given to the landlord from the tenant as protection in the event that the tenant causes damage to the rented property; refunded when the tenant moves out if there is no damage, and can range from 1 to 4 month’s rent.

Landlord

The owner of property (such as land, houses, or apartments) that is leased or rented to others.