Which of the Following Is NOT Really a Financial Ratio

question 52

Multiple Choice

Which of the following is NOT really a financial ratio though it is often used to measure a firm's overall liquidity?

• A)earnings per share
• B)net profit margin
• C)return on equity
• D)net working capital
• E)current ratio

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Definitions:

Managerial Accounting Reports

Internal financial reports that provide managers with the necessary information to make informed business decisions, typically focused on future profitability and efficiency.

Subunits

Subunits refer to smaller, separately identifiable parts of a larger organization, which can be departments, divisions, or subsidiaries, each responsible for distinct functions or regions.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including balance sheet, income statement, and cash flow statement.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any jurisdiction, particularly in the United States.