# Liquidity, profitability, efficiency ratio

## Quiz by Rahela Begum

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9 questions

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- Q1What is the efficiency ratio?The measure of a bank's ability to meet its short-term obligationsA measure of a bank's expenses relative to its revenueA measure of a bank's ability to convert assets into cashA measure of a bank's ability to generate profit30s
- Q2What is the liquidity ratio?A measure of a company's expenses relative to its revenueA measure of a company's ability to generate profitA measure of a company's ability to meet its short-term obligations using its liquid assetsA measure of a company's ability to convert assets into cash30s
- Q3What is the profitability ratio?A measure of a company's efficiency in converting assets into cashA measure of a company's ability to meet its short-term obligations using its liquid assetsA measure of a company's ability to generate profit relative to its revenueA measure of a company's expenses relative to its revenue30s
- Q4What is the return on assets (ROA) ratio?A measure of a company's expenses relative to its revenueA measure of a company's profitability relative to its total assetsA measure of a company's ability to meet its short-term obligations using its liquid assetsA measure of a company's efficiency in converting assets into cash30s
- Q5What is the current ratio?A measure of a company's ability to pay its short-term liabilities using its current assetsA measure of a company's ability to generate profit relative to its revenueA measure of a company's efficiency in converting assets into cashA measure of a company's expenses relative to its revenue30s
- Q6What is the gross profit margin?A measure of a company's profitability by calculating the percentage of revenue left after subtracting the cost of goods soldA measure of a company's ability to meet its short-term obligations using its liquid assetsA measure of a company's ability to generate profit relative to its revenueA measure of a company's efficiency in converting assets into cash30s
- Q7What is the net profit margin?A measure of a company's efficiency in converting assets into cashA measure of a company's ability to meet its short-term obligations using its liquid assetsA measure of a company's ability to generate profit relative to its revenueA measure of a company's profitability by calculating the percentage of net income relative to its revenue30s
- Q8What is the return on equity (ROE) ratio?A measure of a company's profitability by calculating the percentage of net income relative to its shareholders' equityA measure of a company's efficiency in converting assets into cashA measure of a company's expenses relative to its revenueA measure of a company's ability to generate profit relative to its revenue30s
- Q9What is the asset turnover ratio?A measure of a company's expenses relative to its revenueA measure of a company's efficiency in generating revenue relative to its total assetsA measure of a company's ability to generate profit relative to its revenueA measure of a company's ability to pay its short-term liabilities using its current assets30s