Which of the Following Is the Most Commonly Used Liquidity

question 24

Multiple Choice

Which of the following is the most commonly used liquidity ratio?

• A) Inventory turnover ratio
• B) Debt ratio
• C) Debt to equity ratio
• D) Current ratio

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Definitions:

Affirmative Premise

A statement within a logical argument that positively asserts a relationship or condition, contributing towards the conclusion.

Proposition

A formulated idea or plan suggested for acceptance; a plan of action.

Standard Form

A recognized format for presenting information or arguments in a structured and consistent manner.

Pure Hypothetical

A scenario or statement based solely on conjecture without any factual basis or actual case reference.