A liquidity ratio measures the
A) net income or operating success of a company over a period of time.
B) ability of a company to survive over a long period of time.
C) short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash.
D) percentage of total financing provided by creditors.

Question

Quizplus · Accepted Answer

A liquidity ratio assesses a company's ability to meet its short-term obligations and manage unexpected cash needs.

A Liquidity Ratio Measures the