QUESTION $37$

Which of the following is true of the operating ratio?

a$.$ It reflects ability to meet long$-$term financial obligations.

b$.$ It shows managers and investors how much return the organization is generating relative to its assets.

c$.$ It indicates how liquid an organization's assets are.

d$.$ It indicates the effectiveness of specific functional areas rather than that of the total organization.

e$.$ It helps estimate the organization's ability to cover interest expenses on borrowed capital.