Which of the following best measures a company's ability to meet short-term obligations?
A)Liquidity
B)Profitability
C)Productivity
D)Leverage

Question

Quizplus · Accepted Answer

A company's ability to meet short-term obligations is best measured by its liquidity. Liquidity measures a company's cash on hand and assets that can be quickly converted to cash at or near full value. Profitable companies with many assets that lack liquidity can usually finance short-term obligations with other loans.

Which of the Following Best Measures a Company's Ability to Meet