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Liquidity refers to a company's ability to pay its long-term obligations.

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Money orders, cashier's checks, and certified checks are all examples of cash.

Accounting is an information and measurement system that does all of the following except:

A. Records business activities.
B. Helps people make better decisions
Communicates business activities.
D. Eliminates the need for interpreting financial data.
E. Identifies business activities.

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Financial accounting is the area of accounting aimed at serving external users by providing them with general-purpose financial statements.

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Ethical behavior requires that:

Auditors invest in businesses they audit.
B. Auditors' pay depends on the success of the client's business.
C. Auditors' pay not depend on the success of the client's business.
D. Analysts report information favorable to their companies.
E. Managers use accounting information to benefit themselves.

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