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jeyben [28]
2 years ago
14

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)
Business
1 answer:
Free_Kalibri [48]2 years ago
4 0

To know whether Ability Inc. has the resources available to meet its short-term cash needs, a potential investor in the company would be interested. A liquidity analysis is one of these types of analyses.

The term "liquidity" describes the effectiveness or simplicity with which a security or asset can be converted into immediate cash without impacting its market price. Cash itself is the most movable asset.

In other words, liquidity refers to how easily an item may be purchased or sold on the market at a price that reflects its true worth. Due to its ease and speed of conversion into other assets, cash is regarded as the asset with the highest level of liquidity. Real estate, fine art, and collectibles are a few examples of tangible assets that have a low liquidity level. Various points on the liquidity spectrum are occupied by other financial assets, which range from shares to partnership units.

Learn more about liquidity here

brainly.com/question/13781625

#SPJ4

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