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.

---

Definitions:

Shares Issued

The total number of shares that a corporation has legally sold to shareholders, including those held by the public and by the company.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, usually with fixed dividends.

Net Income

The total profit or loss of a business after all expenses, including taxes and operating costs, have been deducted from total revenue.

Common Stock

A type of equity security that represents ownership in a corporation, giving the shareholder voting rights and a share in the company’s profits through dividends.