Efficiency Ratios

question 73

Multiple Choice

Efficiency ratios:

• A) include the quick ratio, asset turnover ratio, and return on equity.
• B) are used to measure how well the company uses its assets.
• C) are used to measure how liquid the company is.
• D) measure the profits generated by a firm's equity and assets.

---

Definitions:

Information and Communication Technologies

An umbrella term that includes all technologies for the manipulation and communication of information.

Equity Method

An accounting technique used by companies to assess the profits earned by their investments in other companies by reporting these profits as income.

Retained Earnings

Cumulative net income of a company that has not been distributed to shareholders as dividends, reinvested in the business.

Non-Controlling Interest

The equity in a subsidiary not attributable, directly or indirectly, to a parent company.