Net Income Does Not Appear in the Numerator of the

question 119

Multiple Choice

Net income does not appear in the numerator of the

• A) profit margin.
• B) return on assets.
• C) return on ordinary shareholders' equity.
• D) payout ratio.

---

Definitions:

Semiannual Interest

Interest calculated and paid twice a year, often related to bonds or loans with fixed interest rates.

Straight-line Method

A technique for computing depreciation or amortization that evenly divides the asset's cost over its expected lifespan.

Bond Liability

An obligation or debt represented by bonds issued by a company, which it is required to repay at a specified time with interest.