Liquidity Is

question 380

Multiple Choice

Liquidity is:

• A) A measure of the use of debt in a firm's capital structure.
• B) Equal to current assets minus current liabilities.
• C) Equal to the market value of a firm's total assets minus its current liabilities.
• D) Valuable to a firm even though liquid assets tend to be less profitable to own.
• E) Generally associated with intangible assets.

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Definitions:

Earnings Per Share

A company's net profit divided by the number of its shares outstanding, indicating the amount of earnings attributable to each share of stock.

Payment Date

The date on which a dividend check is mailed.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Cash Dividend

A payment made in cash to shareholders, typically distributed from a company's earnings.