Which of the Following Ratios Is Not Considered to Be

question 19

Multiple Choice

Which of the following ratios is not considered to be a test of profitability?

• A) Current ratio.
• B) Profit margin.
• C)Return on assets.
• D)Earnings per share.

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Definitions:

General Ledger

A complete record of all financial transactions over the life of an organization, serving as the primary source of information for financial reporting.

Shareholders' Equity

The residual interest in the assets of a company after deducting its liabilities.

Liabilities

Liabilities represent financial obligations or amounts owed by a business to creditors, which can include loans, accounts payable, mortgages, and other debts.