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What is a disadvantage of active stretching?
Current Assets
Current assets are short-term, liquid assets that a company owns and are expected to be converted into cash, sold, or consumed within one year or within a business's operating cycle, whichever is longer.
Acid-Test Ratio
A financial metric that measures a company's ability to pay its short-term liabilities with its quick assets (cash, marketable securities, and receivables).
Prepaid Expenses
Expenses paid in advance for goods or services to be received in the future, recognized as assets on a company's balance sheet until they are consumed or used.
Current Liabilities
Short-term financial obligations that are due within one year or within a normal operating cycle.
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