Which of the Following Measures Would Assist in Assessing the Profitability

question 180

Multiple Choice

Which of the following measures would assist in assessing the profitability of a company?

• A)Debt-to-assets ratio
• B)Fixed asset turnover ratio
• C)Receivables turnover ratio
• D)Current ratio

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Definitions:

Existing Duty

An obligation that a party is already legally bound to under the terms of a contract or by law.

Quantum Meruit

A legal principle where a person is compensated for services or goods provided when no contract exists, based on the value of the work done.

Satisfaction of Debt

The fulfillment or payment of a debt in its entirety, releasing the debtor from further obligations.

Common Law

A legal system based on customs and court rulings rather than written laws, where the principle of precedent guides future judicial decisions.