Operating performance is divided into which two subcategories of ratios?
A) Efficiency and profitability
B) Efficiency and debt
C) Profitability and growth
D) Debt and equity
E) Liquidity and leverage

Question

Quizplus · Accepted Answer

The two subcategories of ratios that fall under operating performance are efficiency ratios and profitability ratios. Efficiency ratios measure how well a company is utilizing its assets and resources to generate sales, while profitability ratios measure the company's ability to earn a profit from its operations.

Operating Performance Is Divided into Which Two Subcategories of Ratios