A(n)__________ ratio indicates the ability of the organisation to meet its current debt obligations.
A) activity
B) liquidity
C) profitability
D) conversion
E) growth

Question

Quizplus · Accepted Answer

Liquidity ratio measures the ability of the organization to meet its short-term debt obligations, that is, it shows whether the company has enough liquid assets to pay off its current liabilities. Examples of common liquidity ratios are the current ratio and the quick ratio.

A(n)__________ Ratio Indicates the Ability of the Organisation to Meet