Answered

Discover how IDNLearn.com can help you find the answers you need quickly and easily. Get accurate and detailed answers to your questions from our dedicated community members who are always ready to help.

A common measure of liquidity is

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

Sagot :

GinnyAnsweridn

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


Thank you for joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! Thank you for visiting IDNLearn.com. We’re here to provide dependable answers, so visit us again soon.