Which of the following does NOT provide an indication of liquidity?
A) quick ratio
B) debt ratio
C) inventory turnover
D) average collection period

Name: Which of the following does NOT provide an indication of liquidity? A) quick ratio B) debt ratio C) inventory turnover D) average collection period
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Question

Quizplus · Accepted Answer

Debt ratio provides an indication of solvency, not liquidity. Quick ratio, inventory turnover, and average collection period are all liquidity ratios.

Which of the Following Does NOT Provide an Indication of Liquidity