Select the Correct Statement from the Following

question 26

Multiple Choice

Select the correct statement from the following:

• A) Total asset turnover reflects the percent of net income in each dollar of net sales.
• B) Return on total assets analysis is beneficial in evaluating a company but is not useful for competitor analysis.
• C) High returns on total assets are desirable.
• D) Profit margin reflects a company's ability to produce net sales from total assets.
• E) Return on total assets can be separated into gross margin ratio and price-earnings ratio.

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Definitions:

FOB Shipping Point

A shipping term indicating that the buyer assumes ownership and responsibility for goods once they are shipped, and must pay for shipping costs.