Which of the following ratios is a liquidity ratio?
A) inventory turnover ratio
B) acid-test ratio
C) debt to owners' equity ratio
D) basic earnings per share

Question

Quizplus · Accepted Answer

The acid-test ratio, also known as the quick ratio, is a liquidity ratio that measures a company's ability to pay off short-term debts quickly using its most liquid assets. The inventory turnover ratio, debt to owners' equity ratio, and basic earnings per share are not liquidity ratios.

Which of the Following Ratios Is a Liquidity Ratio