Which of the following is considered a liquidity analysis tool?
A)Gross profit ratio
B)Acid-test ratio
C)Dividend yield ratio
D)Return on assets ratio

Question

Quizplus · Accepted Answer

The acid-test ratio, also known as the quick ratio, is a liquidity analysis tool that measures a company's ability to meet short-term obligations using its most liquid assets. The higher the acid-test ratio, the more liquid a company is considered to be. The other ratios listed are not specifically related to liquidity analysis.

Which of the Following Is Considered a Liquidity Analysis Tool