If a company is described as 'liquid' what does this mean?

If a company is described as ‘liquid’ what does this mean?

If a company is described as ‘liquid’ what does this mean?
A . the company is funded on equity rather than debt
B . the company spends a lot of money
C . the company is highly profitable
D . the company has enough money to pay short-term liabilities

Answer: D

Explanation:

liquid = the ability to pay short and medium term debts. In simple terms do you have more in stuff (money, assets) than you owe in debt?

Understanding Liquidity and How to Measure It (investopedia.com)

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