Which of the following are liquidity ratios?
I.Cash coverage ratio
II.Current ratio
III.Quick ratio
IV.Capital intensity
A)II and III only
B)I and II only
C)II,III,and IV only
D)I,III,and IV only
E)I,II,III,and IV

Question

Quizplus · Accepted Answer

Liquidity ratios are ratios that measure a company's ability to pay off short-term obligations. The cash coverage ratio, current ratio, and quick ratio are all liquidity ratios. Capital intensity, on the other hand, is a measure of a company's long-term asset investments relative to its sales revenue. Therefore, the correct answer is (A) II and III only, because they are the only options that include liquidity ratios.

Which of the Following Are Liquidity Ratios