CUET Preparation Today
CUET
-- Accountancy Part B
Accounting Ratios
The _____ ratios are primarily measures of return.
Liquidity
Activity
Debt
Profitability
The correct answer is Option (4) → Profitability
Profitability Ratios measure the firm’s ability to earn returns from its operations and investments.
They indicate how efficiently a business is using its resources to generate profit and return to shareholders.