APP: 030 Accounting Ratios III: Liquidity, Profitability




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Summary: Liquidity Ratios Audio Liquidity Ratios   Topics Introduction Current Ratio Quick Ratio Cash Ratio Times Interest Earned Ratio   Introduction Liquidity ratios measure company’s ability to meet its short-term obligations (liquidity). Understanding liquidity is important because it shows the degree to which a company can be expected to pay creditors (or suppliers, via accounts payable), […]