Which of the Following Combinations of Ratios Will Best Analyze

question 70

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:

Unique Culture

The distinctive beliefs, customs, practices, and social behavior of a particular nation, organization, or group.

Common Heritage

Shared cultural, historical, or social traditions, values, or traits among a group of people.

Behave

To act in a manner that is considered appropriate or expected in a particular context or situation.

Straightforwardness

The quality of being direct, clear, and honest in communication without any ambiguity or evasion.