Short-term solvency ratios are also referred to as:
A)leverage ratios
B)liquidity measures
C)utilisation ratios
D)profitability ratios
E)turnover rates

Question

Quizplus · Accepted Answer

Short-term solvency ratios measure a company's ability to meet short-term obligations. Liquidity measures refer to a company's ability to meet its current liabilities with its current assets. Therefore, short-term solvency ratios and liquidity measures are synonymous terms.

Short-Term Solvency Ratios Are Also Referred to As