Which of the Following Is a Measure of Short-Term Liquidity

question 98

Multiple Choice

Which of the following is a measure of short-term liquidity?

• A)Quick ratio
• B)Return on assets
• C)Dividend yield
• D)Debt ratio

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Definitions:

Inflation

The rate at which the typical cost levels of goods and services elevate, undermining the power to buy.

Real Rate

The interest rate adjusted for inflation, providing a more accurate indication of the borrowing cost or investment return in terms of real purchasing power.

Principal

The original sum of money borrowed in a loan, or the original amount invested, excluding any interest or dividends.

Inflation

The pace at which prices for general goods and services ascend, diminishing the capacity to purchase.