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Which financial ratio is designed to determine how well a business can pay its short-term obligations?Multiple Choiceactivity ratioobligations ratiodebt ratioliquidity ratioprofitability ratio

Question

Which financial ratio is designed to determine how well a business can pay its short-term obligations?Multiple Choiceactivity ratioobligations ratiodebt ratioliquidity ratioprofitability ratio

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Solution

The financial ratio designed to determine how well a business can pay its short-term obligations is the liquidity ratio.

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