What is meant by the term liquidity what is the difference, Financial Management

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What is meant by the term liquidity what is the difference

What is meant by the term liquidity? What is the difference between the current ratio and the quick ratio and why might a company be interested in the quick ratio? Specifically, what balance sheet item is excluded from the quick ratio that is included in the current ratio? Why do you think we do this? Are internal or external users interested in liquidity ratios? Why?

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Financial Management: What is meant by the term liquidity what is the difference

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