When the ratio of expenses versus sales is used to express expenses as a percentage of sales, it is called a(n) ________ ratio.
A) current
B) operating
C) quick
D) None of the above.

Question

Quizplus · Accepted Answer

The ratio of expenses versus sales expressed as a percentage is an operating ratio, which measures a company's efficiency in generating profits from its operations. Current and quick ratios are both liquidity ratios that measure a company's ability to meet short-term financial obligations.

When the Ratio of Expenses Versus Sales Is Used to Express