Which of the Following Ratios Does Not Measure Liquidity

question 12

Multiple Choice

Which of the following ratios does not measure liquidity?

• A) Current ratio
• B) Quick ratio
• C) Working capital to total assets
• D) Debt to equity

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Definitions:

Compounded Monthly

Describes the method of computing interest by adding the interest from past periods to the original principal amount and then doing the calculations monthly.

Rate of Return

The earnings or losses accrued from an investment over a predetermined period, measured as a fraction of the investment's buying price.

Interest Rate

The interest rate is the percentage charged on the total amount borrowed or invested, representing the cost of borrowing or the earning from an investment over a specified period.

Loan

A financial amount given as a loan, anticipated to be returned with interest.