What Are the Two Most Common Measures of Liquidity

question 30

Multiple Choice

What are the two most common measures of liquidity?

• A)Cash ratio and inventory turnover ratio
• B)Receivables turnover ratio and payables turnover ratio
• C)Current ratio and quick ratio
• D)Inventory turnover ratio and cash conversion rate

---

Definitions:

Sternberg's Triangular Theory

A theory proposed by Robert Sternberg that describes love in terms of three components: intimacy, passion, and commitment.

Cognitive Component

Pertains to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, and remembering.

Commitment

Marcia’s term for personal investment in an occupation or system of beliefs.

Typological Approach

Theoretical approach that identifies broad personality types, or styles.