Which of the Following Ratios Is Used to Evaluate a Company's

question 42

Multiple Choice

Which of the following ratios is used to evaluate a company's efficiency in using its assets?

• A)Current ratio.
• B)Debt to assets ratio.
• C)Return on assets ratio.
• D)Asset turnover ratio.

---

Definitions:

Industrial Regulation

The government rules and regulations designed to control the behavior of firms within an industry to protect public interest.

Interstate Commerce Act

A United States federal law designed to regulate the railroad industry and its monopolistic practices by enforcing fair rates and supervising railroads' activities.

Federal Government

The national government of a federal country that shares sovereignty with its states or provinces, responsible for national defense, foreign policy, and interstate regulations.