Measured by its ability to satisfy its short-term obligation

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Reference no: EM131566197

1. The ________ of a business firm is measured by its ability to satisfy its short-term obligations as they come due.

A. activity

B. liquidity

C. debt

D. profitability

2. The ________ is a measure of liquidity which excludes ________, generally the least liquid asset.

A. current ratio; accounts receivable

B. quick ratio; accounts receivable

C. current ratio; inventory

D. quick ratio; inventory

Reference no: EM131566197

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