The _____ ratio refers to the ability of the organization to meet its current debt obligation.
A) activity
B) liquidity
C) profitability
D) conversion
E) growth

Question

Quizplus · Accepted Answer

The liquidity ratio measures an organization's ability to pay off its short-term debt obligations. It assesses whether the company can generate sufficient cash flow to cover its debts.

The _____ Ratio Refers to the Ability of the Organization