If Jo Ann has $4,000 in liquid assets and $1,000 in current liabilities, her liquidity ratio is
A) 0.25.
B) 4.0.
C) 1,000.
D) 4,000.

Name: If Jo Ann has $4,000 in liquid assets and $1,000 in current liabilities, her liquidity ratio is A) 0.25. B) 4.0. C) 1,000. D) 4,000.
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Question

Quizplus · Accepted Answer

The liquidity ratio is calculated by dividing liquid assets by current liabilities. In this case, $4,000 (liquid assets) / $1,000 (current liabilities) = 4.0.

If Jo Ann Has $4,000 in Liquid Assets and $1,000