Which of the Following Ratios Is a Primary Measure of Liquidity

question 36

Multiple Choice

Which of the following ratios is a primary measure of liquidity according to the corporate controller survey?

• A)Earnings per Share
• B)Debt/Equity Ratio
• C)Return on Equity after Tax
• D)Current Ratio
• E)None of the answers are correct

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Definitions:

Contracts

are legally binding agreements between two or more parties that are enforceable by law.

Promissory Estoppel

A legal principle preventing a party from withdrawing a promise made to a second party if the second party has reasonably relied on that promise to their detriment.

Incarceration

The act of confining someone in a prison or similar facility.

Compensatory Damages

Compensatory Damages are awarded in civil lawsuits as a monetary compensation to the plaintiff for losses or injuries suffered due to the defendant's actions.