Question 28

What is meant by "liquidity"?

A how quickly an asset is converted into cash

B how quickly an asset is converted into cash and the ability of a firm to meet its short-term liabilities

C the ability of capital to generate profit

D the ability of a firm to meet its short-term liabilities

Question 29

Current Assets minus Current liabilities is called

A Short term assets

B Working Capital

C Short term liabilities

D Net Capital