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Cash flows from financing (CFF) is the last section of the cash flow statement. It provides an overview of cash used in business financing and measures cash flow between a company and its owners and creditors. The cash normally comes from debt or equity, such as selling stocks and bonds or borrowing from a bank. These […]

The key short term liquidity ratios are the current ratio and acid test ratio. The more liquid assets a company has, the better able it is to meet its short-term obligations as they become due. Current liabilities like accounts payable, short-term debt, and accrued expenses reflect near-term financial obligations. The Current Ratio, which divides current

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