Which of the Following Ratios Measures How Efficiently and Effectively

question 21

Multiple Choice

Which of the following ratios measures how efficiently and effectively the firm is using its assets to generate revenue?

• A)total asset turnover ratios
• B)inventory turnover ratios
• C)acid test ratio
• D)return on investment

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Definitions:

Gross Returns

The total return on an investment before any deductions are made for costs or fees.

Written Agreement

A formalized record of a contract or arrangement between parties, documented in written form.

Legal Pitfalls

Situations or actions that could potentially lead to legal issues or disputes due to non-compliance with laws, regulations, or standard practices.

Early Hospitals

Institutions established in the pre-modern era that provided care for the sick, poor, and those in need, often linked to religious or charitable organizations.