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What type of ratio measures a company's ability to turn assets into cash to pay its short-term debts?Multiple choice question.performance ratioliquidity ratioleverage ratioactivity ratio

Question

What type of ratio measures a company's ability to turn assets into cash to pay its short-term debts?Multiple choice question.performance ratioliquidity ratioleverage ratioactivity ratio

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Solution

The type of ratio that measures a company's ability to turn assets into cash to pay its short-term debts is the liquidity ratio.

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ratios measure a company's ability to turn assets into cash to pay its short-term debt.

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