Which of the Following Ratios Is an Indicator of Liquidity

question 132

Multiple Choice

Which of the following ratios is an indicator of liquidity?

• A)The Debt-to-Total Assets Ratio.
• B)The Inventory Turnover Ratio
• C)The Current Ratio.
• D)The Age of Receivables Ratio.

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Definitions:

Defined Contribution Plan

A retirement plan where an employee, employer, or both make contributions on a regular basis, with future benefits fluctuating based on investment earnings.

Risk-free Return

The return on an investment with no risk of financial loss, typically associated with government bonds or other highly trustworthy securities.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean, used in finance as a measure of the volatility of an investment.

Defined Contribution Plan

A type of retirement plan in which the amount of the employer's annual contribution is specified.