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Find the limit. Select the correct answer.
Liquidity Measures
Financial metrics used to determine how quickly a company can turn its assets into cash to meet short-term obligations. Common measures include current ratio and quick ratio.
Current Ratio
The Current Ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.
Quick Ratio
A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets.
Cash Ratio
A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents alone.
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