Question

    Which of the following ratios can help compare the operational efficiency of different entities?

    A Net Profit Ratio Correct Answer Incorrect Answer
    B Assets Turnover Ratio Correct Answer Incorrect Answer
    C Return on Capital Employed Correct Answer Incorrect Answer
    D Current Ratio Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Assets turnover ratio shows how much sales an entity is generating with the use of assets. This is an efficiency ratio.

    Practice Next