You are considering an investment in Microsoft stock and wish to assess the firm's short-term debt-paying ability. All of the following ratios are used to assess liquidity except:
A)Quick ratio.
B)Inventory turnover.
C)Debt to equity ratio.
D)Accounts receivable turnover.

Question

Quizplus · Accepted Answer

Liquidity ratios include: working capital, current ratio, acid test (quick) ratio, accounts receivable turnover, average days to collect ratio, inventory turnover and average days to sell inventory. Debt to equity is a solvency ratio.

You Are Considering an Investment in Microsoft Stock and Wish