Which of the Following Is a Total Dollar Measure of Liquidity

question 45

Multiple Choice

Which of the following is a total dollar measure of liquidity?

• A) accounts receivable turnover ratio
• B) cash to cash operating cycle
• C) number of days' sales in inventory
• D) working capital

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Definitions:

Normal Profit

The minimum level of profit needed for a company to remain competitive in the market, typically considered as the cost of doing business, including opportunity costs.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a given price over a specified period of time.

Market Price

The current price at which a good or service is bought and sold in a market, determined by the interplay of supply and demand.

Purely Competitive Market

A market structure characterized by many buyers and sellers, homogeneous products, and free entry and exit, leading to price being dictated by supply and demand.