Each of the Following Is a Liquidity Ratio Except the

question 55

Multiple Choice

Each of the following is a liquidity ratio except the

• A) acid-test ratio.
• B) current ratio.
• C) debt to assets ratio.
• D) inventory turnover.

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Definitions:

Errand Runner

A person or service engaged to perform small tasks or deliveries.

Implied Authority

A form of authority of an agent that is not explicitly stated but is assumed to be granted as part of the agent's duties.

Winding Up

The process of closing down a company by settling its liabilities and distributing any remaining assets to its shareholders.

Converting Assets

The process of changing assets from one form to another, often from non-liquid assets into cash or cash equivalents.