________ Is a Measure of How Well a Firm Can

question 97

Multiple Choice

________ is a measure of how well a firm can meet its short-term cash requirements.

• A) Leverage (total debt/total assets)
• B) Liquidity (current assets/current liabilities)
• C) Inventory turnover (annual sales/inventory)
• D) Return on equity (net profit before taxes/total assets invested)

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Definitions:

Apostrophe

A punctuation mark used to indicate possession or the omission of letters or numbers.

Measurement

The process of determining the size, quantity, or degree of something using established units or methods.

Standards

Established norms or criteria that define the quality, quantity, or value of something.

Punctuation

The use of symbols such as commas, periods, and question marks in writing to clarify meaning and indicate pauses or intonation.