_____ ratios measure the business's ability to pay debts and expenses that are due in the current accounting period.

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Liquidity ratios measure the business's ability to pay its debts and expenses due in the current accounting period. These ratios include the current ratio, quick ratio, and cash ratio. Profitability ratios measure the business's ability to generate profits, activity ratios measure how efficiently the business is using its assets, and leverage ratios measure the business's debt structure and level of risk.

_____ Ratios Measure the Business's Ability to Pay Debts and Expenses