Examveda
Examveda

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

B. Leverage ratio

C. Activity ratio

D. Profitability ratio

Answer: Option A

Solution(By Examveda Team)

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.

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