Profitability refers to the ability of the business to:
A)earn a reasonable amount of income.
B)provide owners with dividends.
C)pay its current and noncurrent liabilities.
D)manage its accounts receivable and inventory.

Question

Quizplus · Accepted Answer

Profitability refers to the ability of a business to earn a reasonable amount of income. While providing owners with dividends, paying current and noncurrent liabilities, and managing accounts receivable and inventory are important aspects of financial management, they do not fully capture the concept of profitability.

Profitability Refers to the Ability of the Business To