Which of the Following Does NOT Provide an Indication of Liquidity

question 74

Multiple Choice

Which of the following does NOT provide an indication of liquidity?

• A) quick ratio
• B) debt ratio
• C) inventory turnover
• D) average collection period

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Definitions:

Capital Expenditures

Capital utilized by a corporation to purchase, improve, and upkeep tangible assets like land, factories, or machinery.

Fixed Assets

Long-term tangible assets used in operations and not intended for resale, such as machinery, buildings, and land.

Increased Demand

A situation where the desire or need for a product or service exceeds the existing supply at the current price.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.