Which of these categories of financial ratios is used to measure the ability of a firm to meet its short-term financial obligations?
A) leverage ratios
B) profitability ratios
C) activity ratios
D) liquidity ratios

Question

Quizplus · Accepted Answer

Short-term solvency ratios are also known as liquidity ratios. These ratios are used to assess the ability of a company to meet imminent financial obligations.

Which of These Categories of Financial Ratios Is Used to Measure