Which of These Ratios Measure Liquidity

question 39

Multiple Choice

Which of these ratios measure liquidity?

• A)Receivables turnover
• B)Net profit margin
• C)Debt-to-assets ratio
• D)Fixed asset turnover

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Definitions:

Prototype Testing

The process of evaluating a preliminary model of a product to identify any potential issues or improvements before it is produced on a larger scale or released to the market.

Profitability Ratios

Financial metrics used to assess a business's ability to generate earnings compared to its expenses and other relevant costs incurred during a specific period of time.

Leverage Ratios

Financial metrics used to assess a company's ability to meet its financial obligations, with a focus on its use of debt.

Asset Management Ratio

Asset Management Ratio is a financial metric that assesses how effectively an organization is managing its assets to generate revenue, including turnover ratios for inventory, receivables, and fixed assets.