________ ratios tell whether or not the small company will be able to meet its maturing obligations as they come due.
A)Leverage
B)Profitability
C)Liquidity
D)Operating

Question

Quizplus · Accepted Answer

Liquidity ratios are used to evaluate a company's ability to pay off its short-term liabilities as they come due. These ratios look at the relationship between a company's current assets and its current liabilities. Therefore, liquidity ratios are the best choice to evaluate a small company's ability to meet its short-term obligations.

________ Ratios Tell Whether or Not the Small Company Will