Q330
A company's ability to meet its short-term financial obligations is measured by which of the following categories?
A.
liquidity ratios
AnswerB.
profitability ratios
C.
activity ratios
D.
leverage ratios
Answer: Option A
Solution
Answer: Option A
Solution:
A company's ability to meet its short-term financial obligations is measured by liquidity ratios. Liquidity ratios are an important class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital.