Which One of the Following Is Not a Liquidity Ratio

question 91

Multiple Choice

Which one of the following is not a liquidity ratio?

• A)Current ratio
• B)Inventory turnover
• C)Average collection period
• D)Return on assets

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Definitions:

Product Cost Method

A cost-plus method of price setting in which only the costs of manufacturing the product are included in the cost amount to which the markup is added.

Selling Expenses

Expenses that are incurred directly in the selling of merchandise.

Administrative Expenses

Costs related to the general operation of a business, such as salaries of non-sales personnel, rent, office supplies, and utilities.

Variable Cost Method

A cost-plus method of pricing setting in which only the variable costs are included in the cost amount to which the markup is added.