The DuPont System Merges the Income Statement and Balance Sheet

question 195

Multiple Choice

The DuPont system merges the income statement and balance sheet into two summary measures of profitability, ________.

• A) net profit margin, and return on total assets
• B) net profit margin, and return on equity
• C) return on total assets, and return on common equity
• D) net profit margin, and price/earning ratio

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Definitions:

Former Representation

Circumstances where an attorney has previously represented a client in a related or unrelated matter.

Production Possibilities Frontier

A curve representing the maximum combination of goods or services that can be produced with a fixed set of resources and technology.

Utility

In economics, utility means the total satisfaction received from consuming a good or service.

Competitive Equilibrium

is a condition in a market where supply equals demand, with prices becoming stable at this point.