Efficiency ratios:
A) include the quick ratio, asset turnover ratio, and return on equity.
B) are used to measure how well the company uses its assets.
C) are used to measure how liquid the company is.
D) measure the profits generated by a firm's equity and assets.

Question

Quizplus · Accepted Answer

Efficiency ratios are used to measure how well a company is using its assets. The quick ratio, asset turnover ratio, and return on equity are not necessarily all efficiency ratios, as the quick ratio is a liquidity ratio and return on equity is a profitability ratio.

Efficiency Ratios