Which of the Following Measures Is Most Useful in Analyzing

question 76

Multiple Choice

Which of the following measures is most useful in analyzing a company's ability to control expenses?

• A)Debt-to-assets ratio.
• B)Asset turnover ratio.
• C)Net profit margin ratio.
• D)Pro forma ratio.

---

Definitions:

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of each party.

Anticipatory Breach

Occurs when one party to a contract indicates, before the performance is due, that they will not fulfill their contractual obligations.

Misrepresentation

An untrue statement of fact; an incorrect or false representation.

Deposit

A sum of money placed in an account or given as security for the fulfillment of a contractual obligation.