The term used to describe the ability to generate short-term cash flows is:
A)Profitability
B)Solvency
C)Stockholder's Equity
D)Liquidity

Question

Quizplus · Accepted Answer

The term used to describe the ability to generate short-term cash flows is liquidity. Solvency refers to a company's ability to meet its long-term financial obligations, profitability is the ability to generate profits over the long-term, and stockholders' equity is the residual interest in the assets of a company after liabilities have been deducted.

The Term Used to Describe the Ability to Generate Short-Term