Which of the Following Is Considered a Profitability Ratio

question 78

Multiple Choice

Which of the following is considered a profitability ratio?

• A)Return on equity
• B)Acid test ratio
• C)Inventory turnover ratio
• D)Debt-to-equity ratio

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Definitions:

Macroeconomics

Macroeconomics is a branch of economics that studies how the aggregate economy behaves, focusing on indicators like GDP, unemployment rates, and inflation.

Overall Performance

A comprehensive measure of how well an entity, such as a company or economy, is achieving its objectives and fulfilling its operational requirements.

Production Costs

The total expenses incurred in the manufacture of products, including raw materials, labor, and overhead expenses.

Efficient Outcome

An economic situation in which all resources are allocated in the most beneficial way, leaving no room for further improvement without making someone worse off.