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faremi saheed
on Nov 14, 2024

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A common measure of liquidity is

A) return on assets.
B) receivables turnover.
C) profit margin.
D) debt to total assets.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Receivables Turnover

A financial ratio that measures how efficiently a company collects debt from its credit sales, calculated by dividing net credit sales by the average accounts receivable.

  • Familiarize oneself with the concept and arithmetic involved in liquidity ratios, emphasizing the current ratio.
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laila salhiNov 18, 2024
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