Select the Correct Statement from the Following

question 153

Multiple Choice

Select the correct statement from the following:

• A) Profit margin reflects a company's ability to produce net sales from total assets.
• B) Total asset turnover reflects the percent of net income in each dollar of net sales.
• C) Return on total assets can be separated into gross margin ratio and price-earnings ratio.
• D) High returns on total assets are desirable.
• E) Return on total assets analysis is beneficial in evaluating a company but is not useful for competitor analysis.

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Definitions:

Inflation

A general increase in prices and fall in the purchasing value of money.

Total Output

The total quantity of goods and services produced in an economy over a specified period.

Labor Force

The total number of people who are employed or actively seeking employment in an economy.

Union Membership

Individuals who belong to a union, an organization formed for the purpose of representing its members' interests in various employment matters.