Which Ratio Is a Measure of Liquidity That Excludes Inventories

question 65

Multiple Choice

Which ratio is a measure of liquidity that excludes inventories?

• A) Current
• B) Liquid
• C) Debt to gross cash flow
• D) Interest cover

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Definitions:

Budgeted Costs

Projected expenses for a given period as part of an organization's financial planning.

Cost Center

A cost center is a division or department within an organization that does not directly add profit but incurs costs, such as HR or customer service.

Revenue Authority

The government agency responsible for tax collection and the enforcement of tax laws.

Cost Center

A department or unit within a business that does not directly generate revenue, but incurs costs for the company, typically evaluated on its cost efficiency.