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

Question

Quizplus · Accepted Answer

Liquidity ratios measure an organization's ability to convert assets into cash to pay off short-term liabilities.

_____ Measure the Ability of an Organization to Convert Assets