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If a company is considered very liquid or highly solvent for the year, this means it: Must sell off its major fixed assets in order
If a company is considered "very liquid" or "highly solvent" for the year, this means it:
Must sell off its major fixed assets in order to stay in business. |
Has an extremely low acid test (quick) ratio. |
Is able to pay its current debts as they come due using its current assets. |
Has a current ratio that is less than one. |
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