Which of the Measures Below Is Used to Assess Profitability

question 38

Multiple Choice

Which of the measures below is used to assess profitability?

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

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Definitions:

Statute of Limitations

A law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.

Interest Accrue

The process by which interest is added to the principal sum of a loan or deposit, typically over time.

Instrument Due

This term refers to the date on which a financial instrument, such as a check or note, is payable.

Bearer

A person in the possession of an instrument payable to bearer or indorsed in blank.