Accounting for IGCSE & O level - Advanced Principles (Section 8 - No. 15)
What does the liquidity ratio measure?
The ability of a business to generate sales
The ability of a business to pay its current liabilities
The profitability of a business
The efficiency of capital employed
ব্যাখ্যা
The liquidity ratio is a measure of a business' ability to cover its short-term obligations.