Which of the following is not a reason for using profitability measures?
A) to assess performance of key staff
B) to compare performance against competitors
C) to measure the ability to meet its debts as they fall due
D) to track revenue and expenses over time

Question

Quizplus · Accepted Answer

The ability to meet its debts as they fall due is a measure of liquidity, not profitability. Therefore, it is not a reason for using profitability measures.

Which of the Following Is Not a Reason for Using