Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?
A) Times interest earned, return on assets, and inventory turnover.
B) Accounts receivable turnover, inventory turnover in days, and the current ratio.
C) Accounts receivable turnover, return on assets, and the current ratio.
D) Inventory turnover in days, the current ratio, and return on equity.

Question

Quizplus · Accepted Answer

Accounts receivable turnover, inventory turnover in days, and the current ratio are direct measures of liquidity, reflecting how quickly assets can be converted to cash and the ability to meet short-term obligations.

Which of the Following Are the Most Appropriate Measures for Evaluating