The ________________ Is a Measure of the Ability of a Company

question 114

Short Answer

The ________________ is a measure of the ability of a company to pay its short-term liabilities out of short-term assets.

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Definitions:

Assignee

An individual or entity to whom rights or responsibilities are legally transferred from another.

Novation

The act of replacing an old obligation with a new one, substituting a new party for the original party, or changing the terms of an existing obligation.

Delegation

The assignment of authority and responsibility to another person to carry out specific activities while retaining the ultimate accountability.

Mechanic

A professional who repairs and maintains machinery, engines, and other mechanical equipment.