Identify the Following Terms

question 10

Essay

Identify the following terms.
-blast furnace and steel, gunpowder, paper currency, and the abacus

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Definitions:

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term obligations with its current assets.

Liquid

Describes assets that can be easily and quickly converted into cash without significant loss in value.

Quick Ratio

A liquidity measure that indicates a company's ability to pay its current liabilities without needing to sell inventory, calculated as (current assets - inventory) / current liabilities.

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.