The ratios used to measure a firm's ability to meet its short-term obligations to creditors as they come due are called ______.
A) liquidity ratios
B) activity ratios
C) leverage ratios
D) profitability ratios

Question

Quizplus · Accepted Answer

Liquidity ratios measure a firm's ability to meet its short-term obligations, indicating how easily a company can pay off its short-term liabilities with its short-term assets.

The Ratios Used to Measure a Firm's Ability to Meet