The ratios that are specifically concerned with assessing the efficiency with which assets have been used by the business are the:
A) liquidity ratios.
B) gearing ratios.
C) efficiency ratios.
D) investment ratios.

Question

Quizplus · Accepted Answer

Efficiency ratios are specifically concerned with assessing the efficiency with which assets have been used by the business. Liquidity ratios assess the ability of a company to meet its short-term obligations, gearing ratios assess the level of debt in a company's capital structure, and investment ratios assess the returns generated on investments.

The Ratios That Are Specifically Concerned with Assessing the Efficiency