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

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Definitions:

Psychogenic

Refers to symptoms or conditions that originate from mental or emotional causes rather than physical ones.

Repression

Repression is a psychological defense mechanism where unpleasant thoughts, memories, or desires are kept out of conscious awareness.

Preconscious

Part of the mind that contains thoughts and feelings that are not currently in consciousness but can be readily brought to consciousness.

Collective Unconscious

A set of primordial stories and images, hypothesized by Carl Jung to be shared by all of humanity, and which he proposed underlie and shape our perceptions and desires.