Which of the following is a measure of liquidity?
A)Payables turnover
B)Current ratio
C)Working capital
D)All of these are used to evaluate a company's liquidity.

Question

Quizplus · Accepted Answer

All of these options are used to evaluate a company's liquidity. Payables turnover measures how quickly a company pays off its debts, indicating its ability to meet short-term obligations. Current ratio compares a company’s current assets to its current liabilities, indicating whether it can cover short-term debts. Working capital is the difference between a company’s current assets and current liabilities, indicating its ability to meet short-term financial obligations. Therefore, all three options are measures of liquidity.

Which of the Following Is a Measure of Liquidity