Ratios that measure a company's ability to pay its short-term debts as they come due are called activity ratios.

Name: Ratios that measure a company's ability to pay its short-term debts as they come due are called activity ratios.
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Activity ratios measure a company's efficiency in managing assets and liabilities, not its ability to pay short-term debts. Ratios that measure a company's ability to pay short-term debts as they come due are called liquidity ratios.

Ratios That Measure a Company's Ability to Pay Its Short-Term