The ability of the business to pay the amount due to stakeholders as and when it is due is known as _, and the ratios calculated to measure it are known as __ ratios.

Liquidity, Profitability

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Profitability, Liquidity

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Activity, Liquidity

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Liquidity,Liquidity

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Solution

The correct option is D Liquidity,Liquidity
Liquidity is when money or money's worth is readily available to pay various stakeholders of the business as and when it is due.
Liquidity ratios are helpful in determining the liquidity position of a business.
Types of Liquidity ratios : Quick ratio, current ratio, cash ratio, etc.

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The ability of the business to pay the amount due to stakeholders as and when it is due is known as _________, and the ratios calculated to measure it are known as __________ ratios.

The ability of the business to pay the amount due to stakeholders as and when it is due is known as _, and the ratios calculated to measure it are known as __ ratios.