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Which type of financial ratio indicates whether or not the organization is capable of paying off its short-term debts without having to sell any of its inventories?
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Which type of financial ratio indicates whether or not the organization is capable of paying off its short-term debts without having to sell any of its inventories?

User Karthik Kumar
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The answer is the liquidity ratio.

This ratio shows the rate between assets and liabilities. There are two examples of liquidity ratio: current ratio and quick ratio.
User Karthik Dheeraj
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