_____ ratios measure the ability to meet short-term financial obligations.

Question

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Liquidity ratios measure the ability of a company to meet short-term financial obligations and include ratios such as current ratio and quick ratio. Asset ratios measure how efficiently a company is utilizing its assets, profitability ratios measure a company's ability to generate profits, and market ratios measure a company's market value and investor sentiment.

_____ Ratios Measure the Ability to Meet Short-Term Financial Obligations