Each of the following is a liquidity ratio except the
A) acid-test ratio.
B) current ratio.
C) debt to assets ratio.
D) inventory turnover.

Question

Quizplus · Accepted Answer

The liquidity ratios are used to measure a company's ability to meet its short-term obligations. The acid-test ratio and current ratio are examples of liquidity ratios because they measure a company's ability to meet short-term obligations. The debt to assets ratio is a solvency ratio that measures the proportion of a company's assets that are financed through debt. Inventory turnover is an efficiency ratio that measures how effectively a company is managing its inventory.

Each of the Following Is a Liquidity Ratio Except the