Which of the following usually is least important as a measure of short-term liquidity?
A) Quick ratio.
B) Debt ratio.
C) Current ratio.
D) Cash flow from operating activities.

Question

Quizplus · Accepted Answer

Debt ratio is a measure of long-term solvency and not short-term liquidity. The quick ratio, current ratio, and cash flow from operating activities are all commonly used measures of short-term liquidity.

Which of the Following Usually Is Least Important as a Measure