The liquidity ratios measure the ability of a business to meet short-term financial obligations with its short-term assets.

Name: The liquidity ratios measure the ability of a business to meet short-term financial obligations with its short-term assets.
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Liquidity ratios, such as the current ratio and quick ratio, assess a company's capacity to cover its short-term liabilities with its short-term assets, indicating its short-term financial health.

The Liquidity Ratios Measure the Ability of a Business to Meet