A liquidity ratio measures the
A)net income or operating success of a company over a period of time.
B)ability of a company to survive over a long period of time.
C)short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash.
D)percentage of total financing provided by creditors.

Question

Quizplus · Accepted Answer

Liquidity ratios measure a company's ability to meet its short-term obligations with its short-term assets, indicating its short-term financial health and efficiency in using its assets.

A Liquidity Ratio Measures the