The performance ratio that measures the efficiency of the organization in terms of how well the resources of the organization have been used to generate profit is a(n)_____________ ratio.
A) activity
B) leverage
C) profit
D) liquidity
E) inventory turnover

Question

Quizplus · Accepted Answer

Profit ratios measure how efficiently managers are using the organization's resources to generate profits.

The Performance Ratio That Measures the Efficiency of the Organization