Which of the Following Combinations of Ratios Will Best Analyze

question 57

Multiple Choice

Which of the following combinations of ratios will best analyze a company's income statement performance?

• A)gross profit percentage, return on common equity, and debt-to-equity
• B)gross profit percentage, earnings per share, and net profit margin percentage
• C)gross profit percentage, current ratio, and return on common equity
• D)gross profit percentage, net profit margin percentage, and debt-to-equity

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Definitions:

Tendered

The act of presenting for acceptance; in legal and financial contexts, it often refers to offering payment or delivering goods as part of fulfilling a contract.

Liable

Liable refers to being legally responsible to someone else for damages or losses.

Article 6

Article 6 is a broadly used term that can reference a specific provision within a document; without additional context, its specific interpretation can vary widely.

Uniform Commercial Code

An extensive collection of statutes that regulate business dealings in the United States, designed to unify legal requirements throughout the states.