Liquidity ratios use information about current assets and current liabilities.

Name: Liquidity ratios use information about current assets and current liabilities.
Brand: Quizplus
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Quizplus · Accepted Answer

Liquidity ratios such as the current ratio and quick ratio use current assets (such as cash, accounts receivable, and inventory) and current liabilities (such as accounts payable and short-term debt) to evaluate a company's ability to meet its short-term obligations.

Liquidity Ratios Use Information About Current Assets and Current Liabilities