________ ratios indicate management's ability to generate a financial return on sales or investment.
A) Liquidity
B) Leverage
C) Net working capital
D) Profitability
E) Current

Question

Quizplus · Accepted Answer

Profitability ratios measure management's ability to generate a financial return on sales or investment. The other options (liquidity, leverage, net working capital, and current) do not specifically measure financial returns on sales or investment.

________ Ratios Indicate Management's Ability to Generate a Financial Return