Which measures the liquidity ratio of firms?a. Earnings per shareb. Net profit marginOc. Return on AssetsC.d. Average collection period

Option a: This option is incorrect because earnings per share (EPS) is a measure of profitability,…

Answered: Which measures the liquidity ratio of…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 19MCQ

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Similar questions

Which of the following ratios is used to measure a firms profitability? a. Liabilities Ă· Equity c. Sales Ă· Assets b. Assets Ă· Equity d. Net Income Ă· Net Sales
Which of the following ratios is used to analyze a company's liquidity? a. Inventory turnover ratio b. Earnings per share c. Return on assets ratio d. Asset turnover ratio
A common measure of liquidity is a.the asset turnover ratio b.the accounts receivable turnover c.the profit margin d.dividends per share of common stock
A ratio that measures a company’s profitability is thea. leverage ratio.b. gross margin percentage.c. current ratio.d. times-interest-earned ratio.
Which of the following ratios is used to measure the profit earned on each dollar invested in a firm?a. return on sales ratio c. current ratiob. return on equity d. asset turnover ratio
How do i figure out these questions?
Liquidity. The net profit / sales percentage measures which of the following? O Return on investment. O Risk. Profitability.
Dividing quick assets by current liabilities is the calculation for the a.ratio of liabilities to stockholders' equity. b.acid-test ratio. c.current ratio. d.return on investment.
Which of the following is one measure of liquidity? a. Quick ratio b. Profit margin c. Times ineterst earned d. Debt-to-equity rati
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Which measures the liquidity ratio of firms? a. Earnings per share b. Net profit margin Oc. Return on Assets C. d. Average collection period