Which term best matches this description: The ability to meet near-term obligations with available resources.
- Liquidity
- Gross margin
- Working capital
- Ratio analysis
Answer and explanation
Liquidity
Liquidity is the matching concept in this lesson.
Subjects
Choose questions individually, practise online, or create a worksheet with matching answers. Counts include generated variants, not only authored originals.
Liquidity
Liquidity is the matching concept in this lesson.
Gross margin
Gross margin is the matching concept in this lesson.
Working capital
The scenario directly calls for Working capital.
Ratio analysis
The intended concept is Ratio analysis.
The ability to meet near-term obligations with available resources.
The definition in the lesson notes gives the required condition.
Liquidity: The ability to meet near-term obligations with available resources. Gross margin: Gross profit divided by revenue under the stated accounting definitions.
Credit a clear distinction using both definitions and an appropriate example if supplied.
The ability to meet near-term obligations with available resources.
UniversityThe ability to meet near-term obligations with available resources.
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