A Common Measure of Profitability Is the

question 96

Multiple Choice

A common measure of profitability is the

• A) current ratio.
• B) cash current debt coverage ratio.
• C) return on common shareholders' equity ratio.
• D) debt to total assets ratio.

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Definitions:

Principal Amount

This is the original sum of money borrowed in a loan or put into an investment, not including any interest or dividends.

Invested

Describes the act of allocating resources, usually money, into something to earn income or gain profits.

Surplus Funds

Excess of income or assets remaining after all expenses and obligations have been met.

Disputed Account

A financial account or transaction that is contested or challenged due to disagreements between the parties involved over its accuracy or legitimacy.