Q17
The ratios that refer to the ability of the firm to meet the short term obligations out of its short term resources
A.
Liquidity ratio
AnswerB.
Leverage ratio
C.
Activity ratio
D.
Profitability ratio
Answer: Option A
Solution
Answer: Option A
Solution:
The ratios that refer to the ability of the firm to meet the short term obligations out of its short term resources is known as Liquidity ratio.