469FinanceMedium
Which of the following set of ratios is used to assess a business’s ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time?
AProfitability Ratios
BLeverage Ratios
CLiquidity Ratios
DMarket Value Ratios
Correct answer
A. Profitability Ratios
Explanation
Profitability Ratios is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.