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:

Excise Tax

A tax applied to specific goods, services, or activities, either as a flat amount per unit or as a percentage of the price, used to raise revenue or discourage consumption.

Output

The total amount of goods or services produced by a business, industry, or economy within a specific period.

Producers

Entities or individuals that create goods or services for sale or exchange in a market.

Market Situations

Relates to the various conditions or scenarios under which markets operate, influenced by factors like competition, demand, and supply.