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 considered a liquidity analysis tool as it measures a company's ability to pay off short-term liabilities with only its most liquid assets. The other options listed are not specifically designed to measure a company's liquidity.

Which of the Following Is Considered a Liquidity Analysis Tool