Which Is a Liquidity Activity Ratio

question 63

Multiple Choice

Which is a liquidity activity ratio?

• A) profit margin
• B) inventory turnover
• C) return on assets
• D) times interest earned

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Definitions:

Strike Price

The price at which an optioned stock can be bought or sold. Also called the exercise price or striking price.

Intrinsic Value

The actual worth of an asset, determined through fundamental analysis without regard to its market value.

Dividends

Corporate disbursements to its owners, usually representing a portion of the profits.

Prevailing Market Price

The current price at which a particular security, commodity, or asset can be bought or sold in the marketplace.