Which of the following ratios is the best measure of liquidity? a. Return on assets ratio. b.

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Which of the following ratios is the best measure of liquidity?

a. Return on assets ratio.

b. Cash flow from operations to capital expenditures ratio.

c. Current ratio.

d. Earnings per share.

Related Book For answer-question

Fundamental Managerial Accounting Concepts

ISBN: 978-0078110894

6th Edition

Authors: Edmonds, Tsay, olds

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Posted Date: Dec 15, 2019 07:15 PM

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Which of the following ratios is the best measure of liquidity? a. Return on assets ratio. b.

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Expert Answer:

We will see the following ratios in detail and then find out which one is the best measure of liquidity But among these the current ratio is the best measure of liquidity because a creditor would cons... View the full answer

Fundamental Managerial Accounting Concepts

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