Which of the Following Is Considered a Profitability Ratio

question 91

Multiple Choice

Which of the following is considered a profitability ratio?

• A)Earnings per share
• B)Debt-to-equity ratio
• C)Acid-test ratio
• D)Inventory turnover ratio

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Definitions:

Portfolio of Suppliers

The diverse group of vendors and suppliers that a company utilizes to procure goods and services necessary for its operations.

Replenishment Lot Size

The quantity of stock ordered to replenish inventory, balancing order costs with storage costs.

Cycle Inventory

The portion of inventory that a company cycles through to fulfill its regular sales orders.

Indirect Materials

Materials used in the production process that do not become part of the final product, such as lubricants and cleaning supplies.