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Liquidity Ratios

Liquidity rat...

Question

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

A

past financial obligations

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B

current financial obligations

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C

future financial obligations

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D

None of these

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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.

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