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

---

Definitions:

Objective

A specific, measurable goal or target that an individual, team, or organization aims to achieve within a set timeframe.

Constraints

Limitations or restrictions that define the parameters within which a system or process must operate.

Government Program

An initiative sponsored by a governmental entity designed to achieve specific goals such as improving public welfare, supporting economic development, or enhancing education.

Contribution

The amount by which sales revenue exceeds the variable costs of a product, representing the portion of sales that helps to cover the company's fixed costs.