Which Ratio Measures How Effectively a Firm Uses Its Assets

question 41

Multiple Choice

Which ratio measures how effectively a firm uses its assets to generate revenue?

• A) profitability ratio
• B) asset management ratio
• C) liquidity ratio
• D) leverage ratio

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Definitions:

Illusion

A perception that misleadingly represents reality, leading to misinterpretation of true sensory information.

Semicircular Canals

Three fluid-filled tubes in the inner ear that play a key role in maintaining balance by detecting rotational movements.

Three Dimensions

Pertains to objects or spaces that have length, width, and height, allowing them to be perceived as having volume.

Activation of Receptors

The process by which a receptor protein on the surface of a cell or inside it binds to a specific molecule, causing a change in the function of the cell.