The ratios that are specifically concerned with assessing the returns and performance of shares held for investment purposes are the:
A) liquidity ratios.
B) gearing ratios.
C) investment ratios.
D) efficiency ratios.

Question

Quizplus · Accepted Answer

Investment ratios are specifically designed to evaluate the returns and performance of shares held for investment purposes. Liquidity ratios assess a company's ability to meet short-term obligations, gearing ratios analyze the company's capital structure, and efficiency ratios measure a company's ability to utilize its assets and resources effectively. None of these ratios are specifically tailored to assess share investment returns and performance.

The Ratios That Are Specifically Concerned with Assessing the Returns