A liquidity ratio measures the
A)net income or operating success of a company over a period of time.
B)ability of the company to survive over a long period of time.
C)short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash.
D)ability of a company to raise capital.

Question

Quizplus · Accepted Answer

Liquidity ratios measure a company's ability to meet its short-term obligations and handle unexpected needs for cash, indicating its short-term financial health.

A Liquidity Ratio Measures the