Question:What is the purpose of measuring liquidity? 

A To determine if the firm is keeping enough cash on hand to pay accounts payable 
B To determine if the firm is investing their liquid assets to earn the highest return available 
C To measure a firm's ability to remain cash flow positive and meet its short-term obligations 
D To measure a firm's return on investment 

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A 

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Md. Habib Ullah

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