All of the Following Ratios Are Considered Measures of Liquidity

question 78

Multiple Choice

All of the following ratios are considered measures of liquidity except:

• A) Quick ratio.
• B) Debt ratio.
• C) Current ratio.
• D) Receivables turnover rate.

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Definitions:

Plant Assets

Durable assets with physical form, employed in running a company and not meant for resale.

Year Ended

The conclusion of a 12-month accounting period, at which financial statements are prepared.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation to each year of the asset's useful life.

Salvage Value

The predicted value of an asset on the market at the close of its effective life.