The ability of the business to pay the amount due to stakeholders is calculated by ___________.

Solvency ratios

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Activity ratios

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Liquidity ratios

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Profitability ratios

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Solution

The correct option is C Liquidity ratios
Liquidity ratios calculate the ability of the business to pay its due to the stakeholders. Examples of liquidity ratios are Current asset ratio, Quick ratio, Cash ratio and Net working capital ratio

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Similar questions

Q. 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.

Q.
Which stakeholders group would be most interested in?

___________	The VAT and other tax liabilities of the firm
___________	The potential for pay awards and bonus deals
___________	The ethical or environmental activities of the firm
___________	Whether the firm has a long term future
___________	Profitability and share performance
___________	The ability of the firm to carry on providing a service or producing a product

The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they become due. What are the ratios used for this purpose?

Q. The liquidity of a business firm is measured by its ability to satisfy its long term obligations as they become due? Comment.

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

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The ability of the business to pay the amount due to stakeholders is calculated by ___________.

The correct option is C Liquidity ratiosLiquidity ratios calculate the ability of the business to pay its due to the stakeholders. Examples of liquidity ratios are Current asset ratio, Quick ratio, Cash ratio and Net working capital ratio

The correct option is C Liquidity ratios
Liquidity ratios calculate the ability of the business to pay its due to the stakeholders. Examples of liquidity ratios are Current asset ratio, Quick ratio, Cash ratio and Net working capital ratio