Which of the Following Ratios Is a Primary Measure of Liquidity

question 36

Multiple Choice

Which of the following ratios is a primary measure of liquidity according to the corporate controller survey?

• A)Earnings per Share
• B)Debt/Equity Ratio
• C)Return on Equity after Tax
• D)Current Ratio
• E)None of the answers are correct

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Definitions:

Wheeze

A high-pitched sound produced by air moving through narrowed respiratory airways, often heard in asthmatic conditions.

Cheyne-Stokes

A pattern of breathing characterized by a gradual increase in the depth of breathing followed by a decrease, resulting in temporary stoppages of breathing; often associated with serious illness.

Larynx

The voice box located in the neck, which houses the vocal cords and is involved in breathing, producing sound, and protecting the trachea against food aspiration.

Cartilages

A flexible, strong connective tissue found in various parts of the body such as joints, nose, and ears, providing support and cushioning.