Which of the Following Is Considered a Liquidity Analysis Ratio

question 68

Multiple Choice

Which of the following is considered a liquidity analysis ratio?

• A) return on total assets ratio
• B) quick ratio
• C) dividend yield ratio
• D) return on sales ratio

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Definitions:

Cost Of Goods Sold

The expenditures directly associated with manufacturing goods that a company sells, consisting of materials and labor.

Departmental Gross Profit

The gross profit of a specific department within a business, calculated by subtracting the cost of goods sold from the sales revenue of that department.

Photography Department

A specialized division within a company or institution focused on photographic services, including taking, editing, and selling photographs.

Revenue

The total amount of money earned by a company from its business activities, such as the sale of goods and services, before any expenses are deducted.