Which One of the Following Is a Measure of Liquidity

question 255

Multiple Choice

Which one of the following is a measure of liquidity?

• A) Debt-equity ratio.
• B) Return on assets.
• C) Inventory turnover.
• D) Interval measure.
• E) Times interest earned ratio.

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Definitions:

Tax Burden

The impact of taxation on an individual or entity, often expressed as the total amount of tax paid or as a percentage of income.

Excise Tax

A tax levied on specific goods, services, or transactions, often with the aim of reducing their consumption or generating revenue.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or to add value in a production process.

Sellers

Persons or organizations that provide products or services to be purchased in the marketplace.