The firm's use of its assets and control of its expenses to generate an acceptable rate of return is a __________ ratio.
A) Activity
B) Debt
C) Liquidity
D) Profitability

Question

Quizplus · Accepted Answer

The firm's ability to generate profits by effectively using its assets and controlling expenses is a measure of its profitability. Therefore, the ratio mentioned in the question is a profitability ratio.

The Firm's Use of Its Assets and Control of Its