Testbank, Question 61 A common measure of liquidity is receivables turnover. profit margin. debt to total assets. return on assets. Testbank, Question 30 Trade receivables occur when two companies trade or exchange notes receivables. can be accounts receivable or notes receivable. include employee advances. do not result from the operations of the business. Testbank, Question 68 The carrying amount of an asset is equal to the asset's fair value less its original cost. asset's cost less residual value less accumulated depreciation. asset's cost less residual value. asset's cost less accumulated depreciation. Testbank, Question 60 The specific identification method of inventory cost formula must be used when goods are not ordinarily interchangeable. when high priced goods are purchased. for goods that are produced and segregated for specific projects, for goods that are produced and segregated for specific projects, and/or when goods are not ordinarily interchangeable