Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Accounting Ratios

Question:

The _____ ratios are primarily measures of return.

Options:

Liquidity

Activity

Debt

Profitability

Correct Answer:

Profitability

Explanation:

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.