Which Ratios Are Specifically Concerned with Assessing the Returns and Performance

question 46

Multiple Choice

Which ratios are specifically concerned with assessing the returns and performance of shares held for investment purposes?

• A)liquidity ratios.
• B)gearing ratios.
• C)investment ratios.
• D)efficiency ratios.

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Definitions:

Partnership

A lawful business structure involving two or more people who jointly manage and share the earnings.

Financial Accounting Standards Board

An independent organization responsible for establishing and improving financial accounting standards in the United States.

Generally Accepted Accounting Principles

The standard framework of guidelines for financial accounting used in any given jurisdiction.

Internal Users

Individuals within the organization, such as managers and employees, who use financial information to make decisions regarding the company's operations.