You are considering an investment in Apple stock and wish to assess the firm's short-term debt-paying ability.All of the following ratios are used to assess liquidity except:
A)Debt to equity ratio.
B)Inventory turnover.
C)Quick ratio.
D)Accounts receivable turnover.

Question

Quizplus · Accepted Answer

Liquidity ratios indicate a company's ability to pay short-term debts.These ratios include working capital,current ratio,quick ratio,accounts receivable ratios,and inventory ratios.The debt to equity ratio is a measure of solvency.

You Are Considering an Investment in Apple Stock and Wish