The liquidity ratio is designed to show the percentage of ____________ you can cover with your current assets.
A)annual credit obligations
B)future years' credit obligations
C)long-term credit obligations
D)potential credit obligations

Question

The liquidity ratio is designed to show the percentage of ____________ you can cover with your current assets. ​
A)annual credit obligations
B)future years' credit obligations
C)long-term credit obligations
D)potential credit obligations

Quizplus · Accepted Answer

The liquidity ratio measures the percentage of annual credit obligations that can be covered by current assets, indicating a company's ability to pay off its short-term liabilities with its short-term assets.

The Liquidity Ratio Is Designed to Show the Percentage of ____________