If Your Total Liquid Assets Equal $50,000 and Your Total

question 24

Multiple Choice

If your total liquid assets equal $50,000 and your total current debts equal $15,000,your liquidity ratio is

• A)30%.
• B)70%.
• C)143%.
• D)233%.
• E)333%.

---

Definitions:

Retail Outlets

Stores or shops that directly sell goods or merchandise to consumers.

Seasonal Nature

The characteristic of certain processes, businesses, or industries that experience regular and predictable changes that recur every calendar year.

Cash Cycle

The cash cycle is a period between the outlay of cash for the purchase of inventory and the receipt of cash from customer sales, measuring the efficiency of a company's cash management.

Accounts Payable Period

The time it takes for a company to pay off its suppliers after a purchase is made, typically measured in days.