Which of the Following Ratios Is Not Considered to Be

question 87

Multiple Choice

Which of the following ratios is not considered to be a test of profitability?

• A)Current ratio.
• B)Net profit margin.
• C)Return on assets.
• D)Earnings per share.

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Definitions:

Total Product

The aggregate quantity of output produced by an economic unit from a given set of inputs during a specific period of time.

Variable Cost

Costs that change in direct proportion to changes in a firm’s level of production.

Labor

Labor refers to the human effort, both physical and mental, used in the production of goods and services.