Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following is NOT a measure of liquidity?

Current Ratio

Debt-to-Equity Ratio

Cash Ratio

Quick Ratio

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Verified step by step guidance

Understand the concept of liquidity: Liquidity measures a company's ability to meet its short-term obligations using its most liquid assets. Common liquidity ratios include the Current Ratio, Quick Ratio, and Cash Ratio.

Review the provided options: Current Ratio, Debt-to-Equity Ratio, Cash Ratio, and Quick Ratio.

Analyze each option: The Current Ratio, Quick Ratio, and Cash Ratio are all measures of liquidity because they assess the company's ability to pay short-term liabilities using current assets.

Examine the Debt-to-Equity Ratio: This ratio measures a company's financial leverage by comparing its total liabilities to shareholders' equity. It is not a measure of liquidity but rather a measure of solvency and capital structure.

Conclude that the Debt-to-Equity Ratio is NOT a measure of liquidity, as it does not evaluate the company's ability to meet short-term obligations.