MyQuestionIcon

2

You visited us 2 times! Enjoying our articles? Unlock Full Access!

Liquidity Ratios

Liquidity rat...

Question

Liquidity ratios are used to evaluate the capability of an entity to meet its ____________________

A

past financial obligations

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

current financial obligations

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

C

future financial obligations

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

None of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B
current financial obligations

Liquidity ratios are used to evaluate the capability of an entity to meet its current financial obligations.

Suggest Corrections

thumbs-up

0

Similar questions

Q. Liquidity ratios are used to evaluate the capability of an entity to meet its financial obligations.

Q. Which ratio evaluates the capability of a business to meet its long-term financial obligations?

[0.88 marks]

Q. Which of the following groups of ratios shows the capability of an entity to meet its current financial obligations?

[0.88 marks]

Q. ratio describes the ability of a business to meet its financial obligations in the long run.

Q. Financial statement are prepared to provide adequate, _______ and periodical information about economic resources and obligations of a business firm.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Liquidity Ratios

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Liquidity Ratios

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon