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Investigating liquidity is important because
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Investigating liquidity is important because
Investigating liquidity is important because
▸ a company's price earnings ratio will decline.
▸ if a company cannot pay its bills on time, it will have difficulty obtaining resources needed to continue operating.
▸ GAAP requires that assets must exceed liabilities.
▸ a company needs the ability to buy long-term assets.
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Managerial Accounting
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Davis
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if a company cannot pay its bills on time, it will have difficulty obtaining resources needed to continue operating.
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