The liquidity ratio is designed to show the percentage of ______ you can cover with your current assets.
A)current debts
B)current expenses
C)long-term debts
D)planned savings
E)planned purchases

Question

The liquidity ratio is designed to show the percentage of ______  you can cover with your current assets.
A)current debts
B)current expenses
C)long-term debts
D)planned savings
E)planned purchases

Quizplus · Accepted Answer

The liquidity ratio measures a company's ability to cover its current debts with its current assets, indicating its short-term financial health.

The Liquidity Ratio Is Designed to Show the Percentage of ______