As Defined by the Text,list Each of the 2 Liquidity

question 112

Essay

As defined by the text,list each of the 2 liquidity ratios and explain the information they provide about a firm.

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Definitions:

Input

Resources used in the production process to produce goods or services, such as labor, raw materials, and capital.

Output

The amount of goods or services produced by a company, industry, or economy.

Function

A relation between a set of inputs and a set of permissible outputs, typically defined by a rule that every input is related to exactly one output.

Production Function

A mathematical model that describes the relationship between inputs used in production and the output generated from those inputs.