Return on equity and earnings per share are both classified as _____ ratios.
A) liquidity
B) profitability
C) activity
D) current

Question

Quizplus · Accepted Answer

Return on equity and earnings per share are both profitability ratios. Return on equity shows how much profit a company generates with the funds shareholders have invested, while earnings per share measures the amount of earnings each shareholder would receive if the company distributed all of its profits.

Return on Equity and Earnings Per Share Are Both Classified