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:

Adjusting Entries

Journal records created during the final part of an accounting period for the purpose of attributing revenues and expenses to the timeframe in which they actually took place.

Correct Balances

Accurate financial figures in accounting records that match the real-world values of assets, liabilities, and equity.

Accounting Period

A specific time frame for which financial records are tracked and reported, typically a year or quarter.

Accrual Basis

An accounting method where revenue is recorded when earned and expenses are recorded when incurred, regardless of when cash transactions occur.