wo basic measures of liquidity are _____.a.Gross Profit ratio and Operating ratio.b.Current ratio and Quick ratio.c.Current ratio and Average collection period.d.Inventory turnover and Current ratio.

The ______ is a measure of liquidity that excludes generally the least liquid asset ______.a.Current ratio, inventory.b.Quick ratio, inventoryc.Current ratio, Accounts receivable.d.Quick ratio, Accounts receivable.

Define each of the following terms:a. Liquidity ratios: current ratio; quick, or acid test, ratiob. Asset management ratios: inventory turnover ratio; days sales outstanding(DSO); fixed assets turnover ratio; total assets turnover ratioc. Financial leverage ratios: debt ratio; times-interest-earned (TIE) ratio; coverageratiod. Profitability ratios: profit margin on sales; basic earning power (BEP) ratio; returnon total assets (ROA); return on common equity (ROE)e. Market value ratios: price/earnings (P/E) ratio; price/cash flow ratio; market/book (M/B) ratio; book value per sharef. Trend analysis; comparative ratio analysis; benchmarkingg. Du Pont equation; window dressing; seasonal effects on ratios

Liquidity ratios are used to assess:Question 5Answera.long-term solvencyb.ability of an entity to survive over a long termc.short-term sales levelsd.short-term ability of an entity to pay maturing obligations

The ratios that measure the effectiveness of a firm's management in turning over inventory are called ______.Multiple choice question.liquidity ratiosleverage ratiosquick ratiosactivity ratios

A firm's liquidity refers to __.Multiple choice question.its ability to meet its current obligations as they become duethe excess of its cash and accounts receivable over its accounts payable and other accrued liabilitiesthe excess of its total assets over its total liabilitiesthe cash available to pay its current liabilities as they become due