Small Business Owner Barry Shain Has Always Paid All of His

Multiple Choice

Small business owner Barry Shain has always paid all of his current bills on time. However, this year he has more bills coming due than normal. Which type of ratio would help him evaluate whether he is likely to have enough cash to continue meeting his obligations over the next year?

A) liquidity ratio
B) managerial ratio
C) leverage ratio
D) profitability ratio