Which of the Following Are the Most Appropriate Measures for Evaluating

question 182

Multiple Choice

Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?

• A) Times interest earned, return on assets, and inventory turnover.
• B) Accounts receivable turnover, inventory turnover in days, and the current ratio.
• C) Accounts receivable turnover, return on assets, and the current ratio.
• D) Inventory turnover in days, the current ratio, and return on equity.

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Definitions:

Growth Model

A mathematical representation used to describe how a quantity changes over time.

Population

The whole number of people or inhabitants in a country or region.

Compounded Continuously

A method of calculating interest where the interest amount is constantly added to the principal, leading to exponential growth.

Annual Interest Rate

The percentage of a sum of money charged for its use per year.