Match these terms to their correct definition.
-Measure of liquidity that excludes assets that are difficult to convert to cash.
A)Accounts receivable turnover ratio
B)Cash ratio
C)Gross profit percentage
D)Inventory turnover ratio
E)Net profit margin percentage
F)Operating margin percentage
G)Quick ratio
H)Total payout ratio

Question

Quizplus · Accepted Answer

The Quick ratio is a measure of liquidity that excludes assets that are difficult to convert to cash, such as inventory or fixed assets. It only takes into account assets that can be quickly converted to cash, such as cash, cash equivalents, and accounts receivable.

Other definitions:
A) Accounts receivable turnover ratio - measures how quickly a company collects payments from customers
B) Cash ratio - measures a company's ability to pay off its current liabilities with its available cash and cash equivalents
C) Gross profit percentage - measures the profitability of a company's sales after deducting the cost of goods sold
D) Inventory turnover ratio - measures how many times a company’s inventory is sold and replaced over a period of time
E) Net profit margin percentage - measures the percentage of sales that are left over as net income after all expenses have been deducted
F) Operating margin percentage - measures a company's profitability after deducting all operating expenses 
H) Total payout ratio - measures the percentage of earnings paid out to shareholders in the form of dividends.

Match These Terms to Their Correct Definition