Which of the Following Is an Example of a Liquidity

question 42

Multiple Choice

Which of the following is an example of a liquidity ratio?

• A)Times interest earned (TIE)
• B)P/E ratio
• C)Return on equity
• D)Quick ratio

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Definitions:

Administrative Expenses

Costs associated with the general management and administration of an organization, rather than production or sales.

Selling Expenses

Costs associated with the selling of a company's products or services, including advertising, sales commissions, and store maintenance.

Finished Goods Inventory

The total value of all completed products that are ready for sale but have not been sold yet.

Indirect Labor

Labor costs not directly associated with the manufacturing of a product, such as maintenance and administrative staff expenses.