Given the Following Information, Calculate the Liquidity Ratio: Liabilities =

question 18

Multiple Choice

Given the following information, calculate the liquidity ratio: Liabilities = $25,000
Liquid assets = $5,000
Monthly credit payments = $800
Monthly savings = $760
Net worth = $75,000
Current liabilities = $2,600
Take-home pay = $2,300
Gross income = $3,500
Monthly expenses = $2,050

• A) 0.16
• B) 0.41
• C) 2.44
• D) 2.50
• E) 6.25

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Definitions:

Predictive Validity

The extent to which a test or tool accurately forecasts future performance or outcomes.

Selection System

The process and set of tools used by organizations to evaluate and choose the best candidates for a job.

Construct Valid

Pertains to the degree to which a test or measurement accurately represents what it is intended to measure, and how well it relates to the theoretical concept.

Work Sample Test

An assessment method that requires job applicants to perform tasks or work activities that mirror the tasks of the job they are applying for.