The ability to meet short-term obligations and to efficiently generate revenues is called
A)Liquidity and efficiency
B)Solvency
C)Profitability
D)Market
E)Creditworthiness

Question

Quizplus · Accepted Answer

Liquidity and efficiency refer to the ability of a company to meet its short-term obligations (liquidity) and to efficiently generate revenues (efficiency). This is important for maintaining the financial stability of the company in the short term. Solvency refers to the ability of a company to meet its long-term debts, profitability refers to the ability of a company to generate profits, market refers to the demand for a company's products or services, and creditworthiness refers to how creditworthy a company is seen by lenders.

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