Return ratios are measures of the relationship between the a. revenue earned and

Question

Return ratios are measures of the relationship between the

a.

revenue earned and the total equity of a company.

b.

total equity of a company and its cash flows for the period.

c.

profitability and liquidity aspects of a company.

d.

profit earned and the investment made in the company by the various groups of creditors and investors.

a.

revenue earned and the total equity of a company.

b.

total equity of a company and its cash flows for the period.

c.

profitability and liquidity aspects of a company.

d.

profit earned and the investment made in the company by the various groups of creditors and investors.

Explanation / Answer

Return ratios are measures of the relationship between the revenue earned and the total equity of a company.

Option a. revenue earned and the total equity of a company is correct answer.

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