Which of the following is a short-term liquidity ratio?
A)debt/equity ratio
B)profit margin ratio
C)quick ratio
D)return on assets ratio

Question

Quizplus · Accepted Answer

The quick ratio is a short-term liquidity ratio that measures the ability of a company to meet its short-term obligations with its most liquid assets. The debt/equity ratio and return on assets ratio both measure a company's financial leverage and profitability over a longer period of time, while the profit margin ratio measures profitability, but does not directly address liquidity.

Which of the Following Is a Short-Term Liquidity Ratio