A firm that wants to know if it has enough cash to meet its bills would be most likely to use which kind of ratio?
A) Liquidity
B) Leverage
C) Efficiency
D) Profitability

Question

Quizplus · Accepted Answer

Liquidity ratios measure a company's ability to meet its short-term obligations or debts. This includes the ability to pay bills and expenses as they come due. Therefore, a firm that wants to know if it has enough cash to meet its bills would be most likely to use liquidity ratios.

A Firm That Wants to Know If It Has Enough