Final answer:
A firm would use liquidity ratios to assess if it has sufficient funds to meet its short-term obligations. Liquidity measures a company's ability to quickly convert assets into cash to cover liabilities.
Step-by-step explanation:
The ratio that a firm would use to determine if it has enough cash to meet its bills is the liquidity ratio. Liquidity ratios, such as the current ratio or quick ratio, measure a company's ability to cover short-term obligations with its most liquid assets. Therefore, the correct answer to the question is A) liquidity.
Liquidity is a vital concept in both economics and finance, signifying how quickly a financial asset can be converted into cash without significantly affecting its market price. Cash itself is the most liquid asset. The liquidity ratios provide insight into a firm's financial health, specifically its ability to meet current liabilities.