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3.7
Ratios
Liquidity
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Created by
saffa muneer
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Cards (3)
what is liquidity
the ability of a business to
settle
amounts it
owes
what is liquidity ratio
assesses whether a business has sufficient
cash
or
equivalent
current assets to be able to pay its
debts
as they fall due
calculating liquidity ratios
by comparing the
ratio
of
current assets
and
current liabilities