One Test of a Company's Liquidity Is the

question 26

Multiple Choice

One test of a company's liquidity is the

• A)debt ratio
• B)acid-test ratio
• C)return on stockholders' equity
• D)price-earnings ratio

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Definitions:

Fixed Nominal Incomes

Incomes that are set at a certain level and do not change over time regardless of inflation or deflation. Such incomes do not adjust for changes in the cost of living.

Debtors

Individuals or entities that owe money to another party.

Discouraged Worker

An individual who is not actively seeking employment due to a belief that no available jobs suit their skills or experience.

Job Search

The act of looking for employment, due to unemployment or dissatisfaction with a current position.