Which of the Following Ratios Provide Information About Liquidity

question 59

Multiple Choice

Which of the following ratios provide information about liquidity?

• A) Net profit margin.
• B) Current ratio.
• C) Inventory turnover.
• D) Sales to assets.

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Definitions:

Net Loss

A financial situation where a company's total expenses exceed its total revenues, resulting in a negative profit.

Dividends

Funds distributed by a corporation to its shareholders, often as a portion of the company's profits.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but is not control or joint control over those policies.

Net Book Value

The value of an asset after deducting accumulated depreciation, amortization, and impairment from its original cost.