Which of the Following Is a Total Dollar Measure of Liquidity

question 45

Multiple Choice

Which of the following is a total dollar measure of liquidity?

• A) accounts receivable turnover ratio
• B) cash to cash operating cycle
• C) number of days' sales in inventory
• D) working capital

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Definitions:

Inflation

The rate of elevation in the uniform prices of goods and services, undermining the capability to buy more.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, detaching price changes from real output changes.

Nominal GDP

Gross Domestic Product measured in current market prices, without adjustment for inflation, reflecting the value of all goods and services produced by an economy in a year.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all goods and services produced within a country in real terms.