Which of the following is a liquidity ratio?
A) Inventory turnover.
B) Quality of income.
C) Net profit margin.
D) Times interest earned.

Name: Which of the following is a liquidity ratio? A) Inventory turnover. B) Quality of income. C) Net profit margin. D) Times interest earned.
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Question

Quizplus · Accepted Answer

Inventory turnover is a liquidity ratio that measures a company's ability to turn its inventory into cash quickly. It is calculated by dividing the cost of goods sold by average inventory.

Which of the Following Is a Liquidity Ratio