All of the following ratios are used to evaluate short-term liquidity except:
A)the receivable turnover ratio.
B)the current ratio.
C)the inventory turnover ratio.
D)the gross margin ratio.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

The gross margin ratio is a measure of profitability, not short-term liquidity. The other ratios listed are commonly used to evaluate short-term liquidity.

All of the Following Ratios Are Used to Evaluate Short-Term