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.

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Definitions:

Potential for Errors

The likelihood or risk that inaccuracies or mistakes may occur within a process or set of data.

Fraudulent Activity

Deliberate deception to secure unfair or unlawful gain, often involving financial transactions.

Incompatible Duties

Tasks within an organization that are separated to prevent fraud or error, ensuring no individual has control over all aspects of a transaction.

Financial Pressure

The stress or strain on a company's cash flow and finances, potentially affecting its operational capability.