Which of the Following Ratios Measures Efficiency

question 66

Multiple Choice

Which of the following ratios measures efficiency?

• A)Times interest earned
• B)Inventory turnover
• C)Return on assets
• D)Return on equity

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Definitions:

Power Factor

A dimensionless measure of how effectively electrical power is converted into useful work output, particularly the ratio of real power to apparent power in a circuit.

Capacitive VARs

Reactive power measured in Volt-Ampere Reactive (VAR) generated by capacitive loads, which can be used for power factor correction in electrical systems.

Power Factor

An indication of the efficiency with which electrical power is turned into actual work, measured on a scale from 0 to 1, where a value of 1 signifies the highest possible efficiency.

RLC Series Circuit

An electrical circuit consisting of a resistor (R), inductor (L), and capacitor (C) connected in series.