Which of the Following Ratios Is Used to Measure the Profit

question 65

Multiple Choice

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

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

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Definitions:

Accusatory Tone

A manner of expression that implies blame or responsibility for fault or wrongdoing towards someone.

Routine Claims

Standard or regularly occurring requests or reports, often seen in insurance or customer service settings, requiring procedural response.

Warranties

Guarantees issued by a manufacturer or seller concerning the condition of a product and the promise of repair or replacement within a specified period.

Contractual Conditions

The terms and specifications agreed upon by parties in a contract, outlining obligations, rights, and requirements for fulfillment.