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:

Feedback

Information given to someone about their performance or behavior for the purpose of improvement.

Middle Stage

Refers to the intermediate phase in a process, development, or progression where initial adjustments have been made and the groundwork for final outcomes is being established.

Beginning Stage

The initial phase of a process, project, or relationship where things are starting or being developed.

End Stage

The final phase of a situation, condition, or process where things are concluding or coming to a completion.