Accounting for IGCSE & O level - Advanced Principles (Section 8 - No. 11)
What type of ratios are used to assess a company's ability to manage its expenses?
Profitability ratios.
Liquidity ratios.
Efficiency ratios.
Solvency ratios.
Paskaidrojums
Profitability ratios are specifically designed to measure a company's profitability.