The ratios that assess the ease with which the assets of the organization can be converted into cash are
A)liquidity ratios.
B)profitability ratios.
C)debt ratios.
D)operating ratios.
E)None of these.

Question

Quizplus · Accepted Answer

Liquidity ratios assess the ability of an organization to meet its short-term obligations through the conversion of its assets into cash. Examples of liquidity ratios include current ratio, quick ratio, and cash ratio.

The Ratios That Assess the Ease with Which the Assets