Which One of the Following Is Not a Basic Component

question 138

Multiple Choice

Which one of the following is not a basic component of the DuPont method of ratio analysis?

• A) profit margin
• B) total asset turnover
• C) equity multiplier
• D) liquidity margin

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Definitions:

Production Possibilities Curve

A graphical representation showing the maximum combination of goods and services that can be produced from a fixed set of resources.

Bowed Outward

A description of a production possibility frontier that demonstrates the increasing opportunity cost of producing one good over another.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to invest in one option over others.

Rectangles

A four-sided flat shape where every angle is a right angle and opposite sides are parallel and equal in length.