Liquidity ratios concentrate on:
A)The operating cycle.
B)Profitability.
C)Short-term financial strength.
D)Ability to pay interest on loans.

Question

Quizplus · Accepted Answer

Liquidity ratios measure a company's ability to meet short-term obligations and focus on its short-term financial strength, such as the ability to pay off current debts and bills. The other options, such as operating cycle, profitability, and ability to pay interest on loans, are covered by other financial ratios.

Liquidity Ratios Concentrate On