Return ratios are measures of the relationship between the
A)income earned and the investment made in the company by the various groups.
B)revenue earned and the total equity of a company.
C)total equity of a company and its cash flows for the period.
D)profitability and liquidity aspects of a company.

Question

Quizplus · Accepted Answer

Return ratios are financial metrics that measure the amount of income or profit generated by an investment relative to the amount of capital invested, focusing on the relationship between the income earned and the investment made by various stakeholders in the company.

Return Ratios Are Measures of the Relationship Between the