Dennis wants to measure the short-term ability of his company to meet its financial obligations.He would use ________.
A)activity ratios
B)liquidity ratios
C)leverage ratios
D)profitability ratios

Question

Quizplus · Accepted Answer

Liquidity ratios measure a company's ability to meet short-term financial obligations. Activity ratios measure how efficiently a company is using its assets, leverage ratios measure a company's debt levels, and profitability ratios measure a company's ability to generate profits.

Dennis Wants to Measure the Short-Term Ability of His Company