The ________ ratios are primarily used as measures of return.
A) liquidity
B) activity
C) debt
D) profitability

Question

Quizplus · Accepted Answer

Profitability ratios, such as return on assets and return on equity, are used to measure the return generated by a company's activities. Liquidity ratios measure a company's ability to meet short-term obligations, activity ratios measure efficiency in using assets, and debt ratios measure the level of debt compared to assets or equity.

The ________ Ratios Are Primarily Used as Measures of Return