A Common Measure of Liquidity Is

question 103

Multiple Choice

A common measure of liquidity is

• A)return on assets.
• B)receivables turnover.
• C)profit margin.
• D)debt to total assets.

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Definitions:

Average Price

The mean price of a good or service calculated by dividing the total cost by the number of units sold.

Variable Costs

Costs that vary with the level of output produced.

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales.

Variable Costs

Costs that change in proportion to the business activity or production levels, including raw materials and hourly labor.