Question

Mort Zuba, an automobile company, needs to pay off its loans to banks the following year. The company plans to sell its factories in Astonsia in order to pay its debts. In this scenario, Mort Zuba's ability to sell its factories in Astonsia to pay its debts is measured by calculating _____

Liquidity ratios
Sublime ratios
Law ratios
None of the above

Answer 1

Mort Zuba's ability to sell its factories in Astonsia to pay its debts is measured by calculating Liquidity ratios.

Step-by-step explanation:

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.