Profitability ratios measure earning capacity. Dividend Payout Ratio (A), Return on Net Worth (B) and Gross Profit Ratio (C) are profitability ratios. Quick Ratio (D) is a liquidity ratio, and Inventory Turnover Ratio (E) is an activity ratio. Hence the correct combination is A, B and C only.
Every company analyse its earning capacity of the business which is outcome of utilisation of resources employed in the business. To analyse…
CUET UG 2023 — Accountancy Financial Statements
2023mcqmedium
Every company analyse its earning capacity of the business which is outcome of utilisation of resources employed in the business. To analyse profitability company can use:
A. Dividend Payout Ratio
B. Return on Net Worth
C. Gross Profit Ratio
D. Quick Ratio
E. Inventory Turnover Ratio
Choose the choose answer from the option given below:
Official previous-year question
Held on 29 May 2023 · Verified 13 Jul 2026.
Options
- A
C and E only
- B
C, D and E only
- C
A, B and C only
- D
A, C and E only
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