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

Question

Quizplus · Accepted Answer

The Quick Ratio, also known as the Acid Test Ratio, is a measure of liquidity. It assesses a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Which of the Following Is a Measure of Liquidity