Question: Select the correct answer a. Liquid asset is asset that can be converted to cash quickly without having to reduce the assets price very much.

Select the correct answer

a. Liquid asset is asset that can be converted to cash quickly without having to reduce the assets price very much.

b. Liquidity ratios show the relationship of a firms cash and other current assets to its long-term liabilities.

c. The ratio that is calculated by dividing sales by account receivable is called inventory turnover ratio.

d. Quick ratio is calculated by adding inventories to current assets and then dividing the sum by current liabilities.

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