Which measures the liquidity ratio of firms?a. Earnings per shareb. Net profit marginOc. Return on AssetsC.d. Average collection period

Option a: This option is incorrect because earnings per share (EPS) is a measure of profitability,…

Answered: Which measures the liquidity ratio of…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 19MCQ

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Which of the following ratios is used to measure the profit earned on each dollar invested in a firm?a. return on sales ratio c. current ratiob. return on equity d. asset turnover ratio
How do i figure out these questions?
Liquidity. The net profit / sales percentage measures which of the following? O Return on investment. O Risk. Profitability.
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Which one of these ratios measures the efficiency at which a firm employs its assets? a. Return on equity b. Equity multiplier O C. Total asset turnover O d. P/E ratio O e. Profit margin

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Which measures the liquidity ratio of firms? a. Earnings per share b. Net profit margin Oc. Return on Assets C. d. Average collection period