Question

an investor in able inc. would like to understand able's availability of resources to pay its short-term cash requirements. this type of analysis is known as a(n) (efficiency/liquidity) measure.

Answer 1

A type of analysis to understand Able's availability of resources to pay its short-term cash requirements is known as a liquidity measure.

What is liquidity?

Liquidity can be defined as the rate at which an asset or resource such as physical equipment, can be used to purchase any goods or services. This ultimately implies that, liquidity is a characteristics (quality) of money as a medium of exchange around the world.

In Financial accounting, liquidity is simply a measure of the availability of resources to pay current, liabilities, short-term cash requirements, or operating expenses of an entrepreneur or business firm.

Therefore, an analysis of the availability of resources is typically aimed at a company's funding requirements and ability to meet its financial obligations.

Read more on liquidity here: brainly.com/question/14014912

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