Accounting for IGCSE & O level - Advanced Principles (Section 5 - No. 31)
What does the text suggest about the relationship between good credit contact and liquidity?
Good credit contact improves a company's liquidity.
Good credit contact decreases a company's liquidity.
Good credit contact has no impact on liquidity.
Good credit contact is only relevant for long-term solvency.
Explication
Good credit contact helps with liquidity.