Which of the Following Best Describes the Use of Profitability

question 81

Multiple Choice

Which of the following best describes the use of profitability ratios?

• A) It shows the relative amount of funds in the business supplied by creditors and shareholders.
• B) It indicates a company's ability to pay short-term debts.
• C) It indicates management's ability to generate a financial return on sales or investment.
• D) It shows the profit margins for the last six months.
• E) It indicates the future profits from the current customer basE.

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Definitions:

Hand Axe

A prehistoric stone tool, often bifacially flaked to a point or edge, used by early humans for chopping, cutting, and as a general utility tool.

Neandertals

An extinct species or subspecies of archaic humans who lived in Eurasia until about 40,000 years ago, known for their robust build and large brain capacity.

Genus

In the system of plant and animal classification, a group of like species.

Mousterian Tools

Stone tools associated with Neanderthal cultures, known for their specific flaking technique.