__________ are indicators of the relative effectiveness, or profitability, of an organization.
A) Cash ratios
B) Liquidity ratios
C) Activity ratios
D) Debt ratios
E) Profitability ratios

Question

Quizplus · Accepted Answer

Profitability ratios are financial metrics used to assess a business's ability to generate profit relative to its revenue, operating costs, balance sheet assets, and shareholders' equity over time, providing insight into the financial health and efficiency of the company.

__________ Are Indicators of the Relative Effectiveness, or Profitability, of an Organization