Which of the Following Is not Considered a Measure of Liquidity

question 66

Multiple Choice

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

• A)Current ratio
• B)Working capital
• C)Debt to assets ratio
• D)Each of these answer choices are liquidity measures.

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Definitions:

Prior Period Adjustment

Corrections made to a company's financial statements for errors or omissions found in previously reported periods.

Treasury Stock Transactions

Activities involving the buyback or resale of a company's own stock, affecting the equity section of a company's balance sheet but not its issued stock number.

Stockholders' Equity

Represents the residual value of a company's assets after deducting its liabilities, essentially indicating the net worth attributable to shareholders.