Which of the Following Ratios Does Not Use Net Income

question 124

Multiple Choice

Which of the following ratios does not use net income in its calculation?

• A)Net profit margin
• B)Earnings per share
• C)Return on equity
• D)Fixed asset turnover

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Definitions:

Functional Currency

The primary currency used by a business or unit, reflecting the economic environment in which it primarily operates.

Foreign Operation

A subsidiary, associate, joint venture, or branch of a company that is located in a country different from the one where the parent company operates.

Presentation Currency

The currency in which a company's financial statements are presented.

Non-Monetary Items

Assets or liabilities that are not easily quantified in monetary terms, such as goodwill, patents, or real estate.