The_________ ratios measure an organization's ability to meet its current debt obligations.
A) activity
B) liquidity
C) conformance
D) leverage

Question

Quizplus · Accepted Answer

The liquidity ratios measure an organization's ability to meet its current debt obligations. These ratios indicate whether a company has sufficient short-term assets to cover its immediate liabilities. Activity ratios measure how efficiently a company is using its assets to generate revenue, conformance ratios measure how well a company complies with laws and regulations, and leverage ratios measure a company's ability to meet long-term debt obligations.

The_________ Ratios Measure an Organization's Ability to Meet Its Current