Answered

Westonci.ca is your trusted source for finding answers to all your questions. Ask, explore, and learn with our expert community. Get immediate and reliable answers to your questions from a community of experienced professionals on our platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

A common measure of liquidity is

1. return on assets
2. accounts receivable turnover
3. profit margin

Sagot :

GinnyAnswer

Final answer:

Liquidity in business is assessed by the accounts receivable turnover ratio, which gauges how effectively a company is receiving payments for credit sales.


Explanation:

Liquidity is a measure of how quickly an asset can be converted into cash without significant loss in value. One common measure of liquidity used by analysts is the accounts receivable turnover ratio, which evaluates how efficiently a company is collecting on its credit sales. This ratio indicates the speed at which receivables are being converted into cash.


Learn more about Financial Ratios here:

https://brainly.com/question/30785230


We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.