Profitability ratios measure a company's ability to earn costs greater than revenues.

Name: Profitability ratios measure a company's ability to earn costs greater than revenues.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Profitability ratios measure a company's ability to generate profit, which is revenues minus costs, indicating that the company is earning more revenues than costs. Therefore, profitability ratios measure a company's ability to earn profits, not costs greater than revenues.

Profitability Ratios Measure a Company's Ability to Earn Costs Greater