Which of the Following Ratios Is Used to Measure a Firm's

question 31

Multiple Choice

Which of the following ratios is used to measure a firm's profitability?

• A) Liabilities ¸ Equity
• B) Sales ¸ Assets
• C) Assets ¸ Equity
• D) Net income ¸ Sales

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Definitions:

Bifurcation

The division of something into two branches or parts, such as the bifurcation of a blood vessel or a route.

Abdominal Aorta

The largest artery in the abdominal cavity that supplies oxygenated blood to much of the abdominal and pelvic organs and the legs.

Arteriosclerosis

The thickening, hardening, and loss of elasticity of artery walls, often leading to restricted blood flow.

Degenerative Changes

Alterations to body tissues or organs leading to a decline in function or structure, often associated with aging or chronic conditions.