Which of the Following Ratios Is Used to Estimate the Liquidity

question 45

Multiple Choice

Which of the following ratios is used to estimate the liquidity of a firm?

• A)Inventory turnover ratio
• B)Total asset to total liabilities ratio
• C)Current ratio
• D)Quick ratio

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Definitions:

Monetary Risk

The potential financial loss involved in a transaction or investment, considered by consumers and businesses alike.

Perceived Risk

The potential negative consequences that consumers believe they may face when purchasing a product or service.

Extensive Search

The thorough process of seeking information and evaluating multiple options before making a purchase decision, often undertaken for high-involvement products.

Need Recognition

The initial step in the consumer decision process that occurs when a consumer identifies a difference between their current state and a desired state.