________ tell whether or not the small business will be able to meet its maturing obligations as they come due.
A)Operating ratios
B)Profitability ratios
C)Leverage ratios
D)Liquidity ratios

Question

Quizplus · Accepted Answer

Liquidity ratios are used to determine a business's ability to meet its short-term obligations as they come due. These ratios measure the availability of cash or assets that can easily be converted into cash to meet current liabilities. Therefore, liquidity ratios will be the best choice to tell whether or not the small business will be able to meet its maturing obligations as they come due.

________ Tell Whether or Not the Small Business Will Be