_____ compare current assets to current liabilities to indicate the speed with which a company can turn its assets into cash to meet debts as they fall due.
A)Asset utilization ratios
B)Liquidity ratios
C)Debt ratios
D)Profitability ratios
E)Current ratios

Question

Quizplus · Accepted Answer

Liquidity ratios measure a company's ability to cover its short-term obligations with its short-term assets, indicating how quickly assets can be converted to cash.

_____ Compare Current Assets to Current Liabilities to Indicate the Speed