In general,the profitability of a firm is not considered to be important in determining the short-term,debt-paying ability of the firm.

Question

Quizplus · Accepted Answer

The short-term debt-paying ability of a firm is primarily assessed through liquidity ratios, such as the current ratio and quick ratio, which measure the firm's ability to meet its short-term obligations with its current assets, rather than its profitability.

In General,the Profitability of a Firm Is Not Considered to Be