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Which of the Following Ratios Is Rated to Be a Primary

Question 1

Multiple Choice

Which of the following ratios is rated to be a primary measure of liquidity and the highest significance rating of the liquidity ratios according to commercial loan departments?


A) Debt/Equity
B) Current Ratio
C) Degree of Financial Leverage
D) Inventory Turnover in Days
E) Accounts Receivable Turnover in Days

Correct Answer:

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