Which of the Ratios Listed Helps to Indicate the Ability

question 47

Multiple Choice

Which of the ratios listed helps to indicate the ability of a company to generate a return on its assets before considering the cost of financing those assets?

• A) Current ratio
• B) Profit margin
• C) Quick ratio
• D) Return on assets

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Definitions:

Secondhand Car

A vehicle that has had one or more previous owners before the current possession.

Acceptor

A drawee of a draft who has promised to honor the draft as presented by signing it on its face.

Draft

A written order by which the party creating it orders another party to pay money to a third party. Also called bill of exchange.

Instrument

A formal legal document that serves as evidence of a fact, act, or obligation, such as a deed, will, or contract.