Question

Which of the following ratios are basically the measures of yield or return. 

A Liquidity Correct Answer Incorrect Answer
B Activity Correct Answer Incorrect Answer
C Debt Correct Answer Incorrect Answer
D Profitability Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Profitability ratios are used to measure the various aspects of profitability of a company, such as what is the rate of profit on revenue from operations and whether the profits are decreasing or increasing and if declining, the cause of such decline.

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