Which of these categories of financial ratios is used to measure a company's ability to meet its short-term financial obligations?
A) Leverage ratios
B) Profitability ratios
C) Activity ratios
D) Liquidity ratios

Question

Quizplus · Accepted Answer

Liquidity ratios measure a company's ability to meet its short-term financial obligations, indicating how easily a company can convert its assets into cash to pay off liabilities due within a year.

Which of These Categories of Financial Ratios Is Used to Measure