Ratios that measure how efficiently a firm uses its assets to generate sales are known as ________ ratios.
A)asset management
B)long-term solvency
C)short-term solvency
D)profitability
E)market value

Question

Quizplus · Accepted Answer

Asset management ratios are used to evaluate how well a company is using its assets to generate revenue, making it the best choice for this question. Long-term solvency ratios measure a company's ability to meet its long-term obligations, short-term solvency ratios measure a company's ability to meet its short-term obligations, profitability ratios measure a company's ability to generate profits, and market value ratios are used to examine a company's market value relative to its earnings.

Ratios That Measure How Efficiently a Firm Uses Its Assets