A More Stringent Measure of Liquidity Than the Current Ratio

question 98

Multiple Choice

A more stringent measure of liquidity than the current ratio is referred to as

• A)Current asset turnover.
• B)Acid-test.
• C)Collectability test.
• D)Debt to Equity ratio.

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Definitions:

Eliminating Risk

The process of removing potential threats or uncertainties that could negatively impact a project's objectives or outcomes.

Assessing Risk

The process of identifying and evaluating potential risks and their impact on a project, organizational objective, or activity.

Risk Mitigation

Strategies and methods implemented to reduce the severity, impact, or likelihood of potential risks to a project or organization.

Risk Evaluation

The process of identifying, assessing, and prioritizing risks to an organization or project, followed by coordinated efforts to minimize or manage the impact of these risks.