Which of the following ratios is not generally considered to be helpful in assessing short-term liquidity?
A)Acid-test ratio
B)Current ratio
C)Days' to collect receivables
D)Total asset turnover

Question

Quizplus · Accepted Answer

Total asset turnover is a measure of the company's efficiency in generating revenues from its assets over a longer period of time and is not specifically focused on short-term liquidity. A, B, and C are all short-term liquidity ratios.

Which of the Following Ratios Is Not Generally Considered to Be