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16 March, 00:28

Ratios that measure the short-term ability of the company to pay its maturing obligations are

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  1. 16 March, 00:39
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    The answer is Liquidity Ratios.
  2. 16 March, 00:53
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    The answer is Liquidity Ratios.

    Liquidity Ratios are ratios that measures the short-term ability of the company to pay its maturing obligations, and also to meet the sudden need for cash. It can be current ratio, quick ratio or cash ratio.

    Current Ratio is dividing the current assets by current liabilities.

    Quick Ratio is subtracting first the inventories from current assets, then divide the answer by the current liabilities.

    Cash Ratio is adding first the marketable securities (if there are) to cash, the divide its answer by the current liabilities.
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