Which of the following ratios is a primary measure of liquidity according to the corporate controller survey?
A)Earnings per Share
B)Debt/Equity Ratio
C)Return on Equity after Tax
D)Current Ratio
E)None of the answers are correct

Question

Quizplus · Accepted Answer

The current ratio, which measures a company's ability to pay its current obligations with current assets, is a primary measure of liquidity according to the corporate controller survey. The other ratios listed are measures of profitability or leverage, not liquidity.

Which of the Following Ratios Is a Primary Measure of Liquidity