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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