Which of the Measures Below Is Used to Measure Liquidity

question 56

Multiple Choice

Which of the measures below is used to measure liquidity?

• A)Current ratio
• B)Debt-to-assets ratio
• C)Price ÷ Earnings ratio
• D)Times interest earned

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Definitions:

Employees

Individuals who are hired by employers to perform specific jobs in exchange for compensation, forming the workforce of a business or organization.

Car Dealer

A business that specializes in selling new or used cars at the retail level, typically based on a dealership contract with an automaker or sales subsidiary.

Frequencies

Refers to the number of times an event or data point occurs within a specified dataset or period.

Relative Frequencies

The ratio of the number of times a particular value or category appears in a data set to the total number of values or categories.