Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due?

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Liquidity ratios measure a company's ability to meet short-term obligations to creditors. These ratios assess a company's ability to pay its bills and debts on time, without having to sell its assets or borrow more money. Examples of liquidity ratios include the current ratio and the quick ratio.

Which One of the Following Types of Ratios Indicates the Ability