Which One of the Following Ratios Measures How Efficiently and Effectively

question 113

Multiple Choice

Which one of the following ratios measures how efficiently and effectively the firm is using its assets to generate revenue?

• A) total asset turnover ratios
• B) inventory turnover ratios
• C) acid test ratio
• D) return on investment

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Definitions:

Employer's Payroll Taxes

Taxes that employers are required to pay on behalf of their employees, such as social security and Medicare taxes in the United States.

Federal Income Tax

The tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Unemployment Compensation Taxes

Taxes imposed on employers that fund unemployment insurance benefits for laid-off workers.

Form W-2

A tax form used in the United States to report wages paid to employees and the taxes withheld from them.