Which of the Following Is Not Considered a Measure of Liquidity

question 101

Multiple Choice

Which of the following is not considered a measure of liquidity?

• A)Current ratio
• B)Working capital
• C)Both current ratio and working capital
• D)Debt to total assets

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Definitions:

Capital Balance

The amount of money that a partner has invested in a partnership minus any withdrawals or distributions.

Capital Equity

The amount of owners' equity in a firm, representing the residual interest in the assets of the entity after deducting liabilities.

Partnership Income

The earnings distributed to partners in a partnership based on the partnership agreement or ownership percentage.

Partners' Capital Statement

A financial statement that shows changes in each partner's capital account for a specific period.