ratio determines the short term solvency of a business.

Liquidity

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

Solvency

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

Turnover

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

Profitability

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

Open in App

Solution

The correct option is A Liquidity
Liquidity ratios determines the short term solvency of a business. Analysis of the current position of liquid funds determines the ability of the business to pay the amount to its stakeholders.

Suggest Corrections

Similar questions

Analysis of profitability, liquidity and solvency of the business can be done under incomplete records system.

Join BYJU'S Learning Program