Which One of the Following Items Is Not a Measure

question 96

Multiple Choice

Which one of the following items is not a measure of a company's liquidity?

• A) Accounts receivable turnover.
• B) Return on equity.
• C) Quick ratio.
• D) Cash flow ratio.
• E) Day's sales in inventory.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Business Owner

An individual who owns and oversees the operation of a company or enterprise.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, which represents assets minus liabilities.

Asset

Resources owned by an individual or business that have value and can be used to meet debts, commitments, or legacies.