Solved

All of the Following Are Considered to Be Measures of a Company's

Question 31

Multiple Choice

All of the following are considered to be measures of a company's short-term debt-paying ability except:


A) Current ratio.
B) Inventory turnover.
C) Earnings per share.
D) Average collection perioD.Liquidity ratios indicate a firm's short-term ability to pay its current obligations. Liquidity ratios include: working capital, current ratio, acid test (quick) ratio, accounts receivable turnover, average days to collect ratio, inventory turnover and average days to sell inventory. Earnings per share is a stock market ratio.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions