Question

Analysts determined that better buy has the ability to pay its obligations expected to come due within the next year. What did the analysts measure?

A. Liquidity
B. Profitability
C. Solvency
D. Cash on hand

Answer 1

The analysts measured the company's ability to pay its short-term obligations, which falls under the category of liquidity.

Step-by-step explanation:

The analysts measured the company's ability to pay its obligations expected to come due within the next year, which falls under the category of liquidity. Liquidity refers to how quickly a financial asset can be used to buy goods or services. In this case, the analysts were assessing whether the company has enough cash on hand to meet its short-term obligations.