Which of the following is an example of liquidity analysis?
A)Bonds payable are divided by total liabilities and stockholders' equity.
B)Net income is divided by total assets.
C)Net income is divided by the number of shares of stock outstanding
D)Current assets are divided by current liabilities.

Question

Quizplus · Accepted Answer

Liquidity analysis involves an assessment of a company's ability to meet its short-term obligations, and is typically measured by comparing a company's current assets to its current liabilities. Option D presents an example of this type of analysis.

Which of the Following Is an Example of Liquidity Analysis