Asset management ratios indicate the ability to meet short-term obligations to creditors as they come due.

Question

Quizplus · Accepted Answer

Asset management ratios actually indicate how efficiently a company is managing its assets to generate profits. Short-term liquidity ratios, such as the current ratio and the quick ratio, are the ratios that indicate the ability to meet short-term obligations to creditors as they come due.

Asset Management Ratios Indicate the Ability to Meet Short-Term Obligations