Executives at Belize Inc. want to see the company's short-term solvency ratios. What question do they most likely want to have answered?
A) Can immediate debts be paid without obtaining more loans?
B) Is there enough inventory to fulfill sales demands?
C) How much inventory does the company have on hand?
D) How much debt is the company carrying?
E) Are the company's products priced correctly to maximize revenue?

Question

Quizplus · Accepted Answer

Short-term solvency ratios indicate a company's ability to meet its immediate financial obligations, i.e. paying off debts due in the near future. Therefore, executives at Belize Inc. would be interested in knowing if the company has enough funds to pay off its immediate debts without needing to obtain more loans.