Which of the Following Profitability Ratios Would Be Determined Through

question 40

Multiple Choice

Which of the following profitability ratios would be determined through a common-size vertical analysis of the income statement?

• A) Gross profit percentage
• B) Return on assets
• C) Return on equity
• D) Earnings per share

---

Definitions:

Canadian GAAP

Generally Accepted Accounting Principles in Canada, a set of standards for financial reporting and accounting.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for preparing financial statements.

Fair Value Accounting

An accounting approach where companies measure and report the value of certain assets and liabilities on a fair value basis.

Net New Borrowing

The difference between the new debt taken on and debt that is repaid during a given period, reflecting a company's or government’s net financing activity.