Which of the Following Ratios Is Used to Measure the Profit

question 36

Multiple Choice

Which of the following ratios is used to measure the profit earned on each dollar invested in a firm?

• A) Current ratio
• B) Asset turnover
• C) Return on sales
• D) Return on equity

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Definitions:

Oxidation

A chemical reaction that involves the loss of electrons by a molecule, atom, or ion.

Reduction

A chemical reaction that involves the gain of electrons or the decrease in oxidation state by a molecule, atom, or ion.

Oxidizing

Refers to the process of losing electrons or increasing the oxidation state of a molecule, atom, or ion in a chemical reaction.

Primary Alcohol

An alcohol with the -OH group attached to a carbon atom that is itself bonded to no more than one other carbon atom.