T F Liquidity ratios show a companys capacity to pay maturi

(T / F) Liquidity ratios show a company\'s capacity to pay maturing current liabilities.

Solution

Answer:True

Liquidity ratios measure short term abiltity of the company to pay its maturing obligations and to meet unexpected needs for cash.

So Liquidity ratios show a company\'s capacity to pay maturing current liabilities is true.