Two Frequently Cited Ratios of Profitability That Can Be Read

question 78

Multiple Choice

Two frequently cited ratios of profitability that can be read directly from the common-size income statement are:

• A) the gross profit margin and the net profit margin.
• B) the gross profit margin and the earnings per share.
• C) the gross profit margin and the return on total assets.
• D) the earnings per share and the return on total assets.

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Definitions:

Decision-making Authority

The power or right vested in an individual or body to make choices and implement decisions.

Political Influence

The capacity or power of individuals or groups to alter or control the actions, policies, or decisions of political leaders or governments.

Intragenerational Mobility

Is social mobility that occurs within a single generation.

Structural Mobility

Refers to the social mobility that results from changes in the distribution of occupations.