Return on assets is a profitability ratio

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Reference no: EM131526819

1. An example of a Liquidity ratio would be the 'current ratio', which is equal to current assets / current liabilities:

a) True

b) False

2. Return on Assets is a profitability ratio. It is equal to Revenues / Total Assets:

a) True

b) False

3. A company that has a P/E ratio of 35 would be expected to grow more quickly than a company with a P/E ratio of 20:

a) True

b) False

Reference no: EM131526819

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