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
Answer: Option A
Solution(By Examveda Team)
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.This Question Belongs to Management >> Strategic Management
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