Which of the following ratios is not a measurement of the firm's liquidity? A) Current ratio B) Cash ratio C) Receivables turnover D) Inventory turnover E) Total asset turnover

Name: Which of the following ratios is not a measurement of the firm's liquidity? A) Current ratio B) Cash ratio C) Receivables turnover D) Inventory turnover E) Total asset turnover
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Question

Quizplus · Accepted Answer

Total asset turnover is a measure of a firm's efficiency in using its assets to generate sales, not a measure of liquidity.

Which of the Following Ratios Is not a Measurement of the Firm's