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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