_____ ratios measure the ability of an organization to convert assets into the cash it needs to pay off liabilities that come due in the next year.
A) Activity
B) Leverage
C) Liquidity
D) Profitability

Question

Quizplus · Accepted Answer

Liquidity ratios measure the ability of an organization to convert assets into the cash it needs to pay off liabilities that come due in the next year. Examples of liquidity ratios include the current ratio and the quick ratio.

_____ Ratios Measure the Ability of an Organization to Convert