The Ability to Meet Short-Term Obligations and to Generate Revenues

question 111

Multiple Choice

The ability to meet short-term obligations and to generate revenues using the least amount of resources is called:

• A)Liquidity and efficiency.
• B)Solvency.
• C)Profitability.
• D)Market prospects.
• E)Creditworthiness.

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Definitions:

Account Payable

Liabilities or amounts owed by a company to its creditors for goods or services that have been delivered or used but not yet paid for.