Question

Ability of a company to meet its short term debt obligations

Answer 1

Explanation:

Liquidity refers to the ability of a company to pay off its short-term debts; that is if the current liabilitiescan be paid with the current assets on hand. ... Solvency, on the other hand, is the ability of the firm to meet long-term obligations and continue to run its current operations long into the future.

i hope help you❤❤❤

Answer 2

Answer:

Liquidity ratios are the ratios that measure the ability of a company to meet its short term debt obligations. These ratios measure the ability of a company to pay off its short-term liabilities when they fall due.