Which One of the Following Ratios Is a Measure of a Firm's

question 39

Multiple Choice

Which one of the following ratios is a measure of a firm's liquidity?

• A) Cash coverage ratio
• B) Profit margin
• C) Debt-equity ratio
• D) Quick ratio
• E) NWC turnover

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Definitions:

Population Parameter

A numerical characteristic or measure that describes an aspect of a population, such as its mean or variance.

Sampling Distribution

The distribution of probabilities for a certain statistic, obtained from a random sample.

Sample Statistic

A numerical measure that describes an aspect of a sample of a population.

Probability Samples

Samples chosen in such a way that every member of the population has a known, non-zero chance of being included.