Which of the Following Is Not a Measure of Liquidity

question 50

Multiple Choice

Which of the following is not a measure of liquidity?

• A)Working capital
• B)Average collection period
• C)Acid-test
• D)Price-earnings ratio

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Definitions:

Exchange Gain

A profit arising from changes in foreign exchange rates that benefit the value of a company's foreign currency denominated assets or liabilities.

April 30 Year-End

A fiscal year or financial reporting period that concludes on April 30th, often used by companies or organizations for tax or reporting purposes.

Cash-Flow Hedge

A financial strategy used to manage risks associated with the fluctuations in cash flows due to changes in exchange rates, interest rates, or commodity prices.

Cost of the Hedge

The total expenses associated with establishing and maintaining a hedge, including transaction fees and the difference in interest costs.