Question

Denise's uncle wants to know how efficiently his firm manages its assets and operations to generate net income. Thus, he has contacted Denice and asked her to help him calculate the firm's ______________________ ratios.
a. long-term solvency
b. short-term solvency
c. asset management
d. profitability
e. turnover

Answer 1

Answer:

d. profitability

Explanation:

Profitability ratio tells us about the ability to make income by using assets and operation of the business. It deals with different types of income like Gross income, net income, income before interest and tax. Return on Assets (ROA) is the ration that exact ratio which shows the efficiently his firm manages its assets and operations to generate net income.