Which Type of Financial Ratio Measures How Well the Managers

question 11

Multiple Choice

Which type of financial ratio measures how well the managers of an organization are creating value from the organization's assets?

• A) Leverage ratios
• B) Liquidity ratios
• C) Profit ratios
• D) Current ratios
• E) Activity ratios

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Definitions:

Periodical Data

Data collected at regular intervals over time, often used to track changes and trends in certain fields or industries.

Potential Competitors

Companies not currently in the market but have the capability to enter and become a competitor due to similar resources or capabilities.

Data

Facts and statistics collected together for reference or analysis, which can be qualitative or quantitative.

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 designed to protect investors from fraudulent financial reporting by corporations, improving the accuracy and reliability of corporate disclosures.