The rate of return on total assets and the rate of return on ordinary shareholders' equity are used to evaluate the:
A)ability to pay current liabilities with current assets.
B)profitability of the business.
C)cash flow of the business.
D)liquidity of the business.

Question

Quizplus · Accepted Answer

These ratios measure how effectively a company is using its assets and equity to generate profits, thus evaluating the profitability of the business.

The Rate of Return on Total Assets and the Rate