________ ratios measure the ability of an organization to pay its short-term debts.
A)Leverage
B)Liquidity
C)Activity
D)Profit
E)Inventory turnover

Name: ________ ratios measure the ability of an organization to pay its short-term debts. A)Leverage B)Liquidity C)Activity D)Profit E)Inventory turnover
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Question

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Liquidity ratios measure an organization's ability to pay its short-term debts by assessing its current assets relative to its current liabilities.

________ Ratios Measure the Ability of an Organization to Pay