Which of the Following Ratios Is not a Measurement of the Firm's

question 2

Multiple Choice

Which of the following ratios is not a measurement of the firm's liquidity?

• A) Current ratio
• B) Cash ratio
• C) Receivables turnover
• D) Inventory turnover
• E) Total asset turnover

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Definitions:

Capital Projects

Large-scale investment projects that require significant amounts of capital, typically in infrastructure, buildings, or technology, aiming for long-term benefits.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to address the time value of money.

Interest Rate

The fee, represented as a percentage of the total loan amount, that a lender requires from a borrower for the privilege of borrowing money or other resources.

Prizes

Prizes are awards or rewards given for a specific achievement, often used as a form of recognition or incentive in various fields.