13. Which of the following best describes liquidity? A. The ability to increase the value of retained earnings B. The ability to pay the debts of the company as they become due C. Being able to buy everything the company requires for cash. D. Purchasing everything the company requires on credit. 14. Profitability may be defined as: A. The ability to pay the debts of the company as they fall due. B. The ability to increase retained earnings. C. Distributing dividends D. Having excess cash 15. Owners' equity in a business decreases as a result of which of the following? A. Investments of cash by the owners. B. Profits from operating the business. C. Losses from unprofitable operation of the business D. Repaying a loan to a commercial bank