Which of the Following Ratios Is a Liquidity Ratio

question 76

Multiple Choice

Which of the following ratios is a liquidity ratio?

• A) inventory turnover ratio
• B) acid-test ratio
• C) debt to owners' equity ratio
• D) basic earnings per share

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Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service, a critical concept in economic theory for optimal production levels.

Public Goods

Goods that are non-excludable and non-rivalry in consumption, meaning they are available to all members of society and one person's use does not diminish another's.

Production

The process of creating goods and services from various inputs like labor, capital, and raw materials.

Marginal Cost

The supplementary cost for manufacturing an extra unit of a product or service.