Financial ratios that measure the firm's ability to pay its bills over the short run without undue stress are known as:

Question

Quizplus · Accepted Answer

Short-term solvency ratios, also known as liquidity ratios, are designed to measure a company's ability to meet its short-term obligations. These include ratios like the current ratio and the quick ratio, which assess whether the firm has enough resources to cover its liabilities due within a year.

Financial Ratios That Measure the Firm's Ability to Pay Its