When predicting a company's ability to generate cash in order to meet its bills payments,the __________ ratio needs to be calculated.
A)leverage
B)activity
C)profitability
D)liquidity
E)asset management

Question

Quizplus · Accepted Answer

The liquidity ratio measures a company's ability to pay off its short-term debt obligations based on its current assets. This is important when predicting a company's ability to generate cash in order to meet its bills payments.

When Predicting a Company's Ability to Generate Cash in Order