Which of the following are measures of liquidity?
I.net working capital
II.accounts receivable turnover
III.current ratio
IV.times interest earned
A)I and III only
B)I, II and III only
C)I, II and IV only
D)I, III and IV only

Question

Quizplus · Accepted Answer

Measures of liquidity assess a company's ability to meet its short-term obligations. Net working capital (I), current ratio (III), and accounts receivable turnover (II) are all measures of liquidity. Times interest earned (IV) is a measure of a company's ability to meet its interest payments and is not a measure of liquidity.

Which of the Following Are Measures of Liquidity