ratios measure how efficiently managers are using the organization's resources to generate profits.
A)Liquidity
B)Activity
C)Functional
D)Leverage
E)Profit

Question

Quizplus · Accepted Answer

The category of ratios that measures how efficiently managers are using the organization's resources to generate profits is the profitability ratios. These ratios include measures such as return on investment, return on assets, and profit margin. Therefore, the best choice is E - Profit.

Ratios Measure How Efficiently Managers Are Using the Organization's Resources