1492. A company’s ability to meet its short-term financial obligations is measured by which of the following categories?

A. liquidity ratios
B. profitability ratios
C. activity ratios
D. leverage ratios
✅ The correct answer is option A.
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.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top