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22 December, 18:21

Which of the following is a measure of liquidity?

A) Liabilities-to-Equity Ratio = Total Liabilities / Stockholder's Equity

B) Times Interest Earned = Earnings before interest and taxes / Interest Expense

C) Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) /

D) Current Liabilities Return on net operating assets (RNOA) All of the above

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  1. 22 December, 19:57
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    C) Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / current liabilities

    Explanation:

    A liquidity ratio is a balance sheet ratio that measures the ability of a firm to meet its short term obligations. They include cash, quick and current ratios.
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