Which Ratio Is a Test of Liquidity

question 134

Multiple Choice

Which ratio is a test of liquidity?

• A)Net profit margin
• B)Inventory turnover
• C)Times interest earned
• D)Debt-to-assets

Recognize the diversity of languages in the world and their significance.

Compare Canadian and American cultural attributes.

Understand components of non-verbal communication.

Identify core Canadian values.

---

Definitions:

Value Chain

A model that outlines the series of activities that add value to a company's products or services, from raw materials to final product delivery to consumers.

Merchandising Entity

A type of business that purchases goods in a finished condition for the purpose of resale without further processing.

Conversion Costs

Denotes the aggregate costs of converting raw materials into finished goods, specifically comprising labor and manufacturing overhead expenses.

Professional Entities

Organizations that provide specialized services requiring a high degree of training and expertise, such as legal, medical, or accounting services.