Two Frequently Cited Ratios of Profitability That Can Be Read

question 36

Multiple Choice

Two frequently cited ratios of profitability that can be read directly from the common-size income statement are ________.

• A) the earnings per share and the return on total assets
• B) the gross profit margin and the earnings per share
• C) the gross profit margin and the return on total assets
• D) the gross profit margin and the net profit margin

---

Definitions:

Agricultural Societies

Communities or societies that primarily rely on agriculture and farming as the main source of livelihood and economic activity.

Agrarian Societies

Societies primarily based on agricultural production and rural communities.

Genetic Engineering

The deliberate modification of the characteristics of an organism by manipulating its genetic material.

DNA

Deoxyribonucleic acid, a molecule that contains the genetic instructions an organism needs to develop, live, and reproduce.