Which One of the Following Would Not Be Considered a Liquidity

question 121

Multiple Choice

Which one of the following would not be considered a liquidity ratio?

• A)current ratio
• B)inventory turnover ratio
• C)receivables turnover ratio
• D)return on assets ratio

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Definitions:

Revenue Account

An account that tracks the income earned by a company before any expenses are deducted, often classified by source.

Accounting Process

A series of procedures and steps taken for the purpose of accounting, including recording, classifying, and summarizing financial transactions.

Accounting Equation

The foundational principle of accounting, stating that assets equal liabilities plus equity.

Source Documents

Original records that contain the details of a business transaction, such as invoices, receipts, and contracts.