Which of the Following Is a Measure of Liquidity

question 25

Multiple Choice

Which of the following is a measure of liquidity?

• A)Return on equity
• B)Return on assets
• C)Working capital
• D)Profit margin

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Definitions:

Profit

The financial gain achieved when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Harvest

The process or period of gathering in crops.

Life Tenant

An individual who has the right to use and benefit from property during their lifetime, but cannot sell or transfer the property.

Extract Minerals

The process of removing solid minerals from the earth, which are then used in various industries and products.