A Common Measure of Liquidity Is

question 154

Multiple Choice

A common measure of liquidity is

• A) ratio of net sales to assets.
• B) dividends per share of common stock.
• C) receivable turnover.
• D) profit margin.

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Definitions:

Finished Goods

Items that have finished being manufactured and are prepared for purchase by consumers.

Inventory

The raw materials, work-in-progress, and finished goods that a company holds for the purpose of sale in the future.

November

The 11th month in the Gregorian calendar system.

Cash Collections

The process of gathering and processing payments received from customers, especially in terms of accounts receivable management.