The question "Did the ordinary shareholders receive an adequate return on their investment?" is answered through the use of
A)liquidity ratios.
B)profitability ratios.
C)coverage ratios.
D)leverage ratios.

Question

Quizplus · Accepted Answer

The question is asking about the return on investment, which is a measure of profitability. Therefore, profitability ratios such as return on investment (ROI) or return on equity (ROE) would be the most appropriate to answer the question. Liquidity ratios measure a company's ability to meet short-term obligations, coverage ratios assess a company's ability to pay interest and debt, and leverage ratios look at the company's level of debt and how it affects the company's financial structure.

The Question "Did the Ordinary Shareholders Receive an Adequate Return