What Factor Has Changed the Roles of Managerial Accountants

question 143

Multiple Choice

What factor has changed the roles of managerial accountants?

• A)Stricter GAAP standards
• B)Technology
• C)Stricter audit standards
• D)None of the above

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Definitions:

Profitability Ratios

Ratios that compare income with one or more primary activities.

Net Profit Margin

A financial ratio representing the percentage of net income to sales revenue, indicating how much of each dollar earned by the company is translated into profits.

Return on Assets

A ratio indicating how efficiently a company is using its assets to generate profit, calculated as net income divided by total assets.

Earnings Per Share

A metric that divides a company's profit available to its common stockholders by the average outstanding shares.