Question

    Which of the following ratios can help compare the

    operational efficiency of different entities?
    A Net Profit Ratio Correct Answer Incorrect Answer
    B Assets Turnover Ratio Correct Answer Incorrect Answer
    C Return on Capital Employed Correct Answer Incorrect Answer
    D Current Ratio Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Assets turnover ratio shows how much sales an entity is generating with the use of assets. This is an efficiency ratio.

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