Geoff has been looking at some liquidity ratios for K&M Enterprises. This indicates that he wants to know whether the company is likely to face problems in repaying its debts.

Question

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Liquidity ratios are used to measure the company's ability to repay its short-term debts. Therefore, if Geoff is looking at these ratios, it indicates he wants to know whether the company is likely to face problems in repaying its debts.

Geoff Has Been Looking at Some Liquidity Ratios for K&M