________ ratios tell whether or not the small company will be able to meet its short-term obligations.
A)Leverage
B)Profitability
C)Liquidity
D)Operating

Question

Quizplus · Accepted Answer

Liquidity ratios measure a company's ability to meet its short-term liabilities, such as debts and bills. These ratios indicate whether the company has enough cash or liquid assets to pay its immediate obligations. Examples of liquidity ratios include current ratio, quick ratio, and cash ratio.

________ Ratios Tell Whether or Not the Small Company Will