The Calculations for Some Profitability Ratios Are the Same as the Calculations

question 24

Multiple Choice

The calculations for some profitability ratios are the same as the calculations for common-size analysis of the income statement.Which of the following profitability ratios would also be determined through a common-size analysis of the income statement?

• A)Gross profit ratio
• B)Debt-to-equity ratio
• C)Acid-test ratio
• D)Earnings per share

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Definitions:

Mammary Glands

Specialized organs in mammals that produce milk to nourish newborn offspring, consisting of lobular glands that are modified sweat glands.

Prolactin

A hormone produced by the pituitary gland that plays an important role in lactation, stimulating milk production in mammals.

Oxytocin

A hormone and neuropeptide involved in childbirth and lactation, also playing a role in social bonding and trust.

Muscle

A tissue in animal bodies composed of fibers that contract to produce movement or maintain the position of parts of the body.