All of the Following Ratios Are Considered Measures of Profitability

question 66

Multiple Choice

All of the following ratios are considered measures of profitability except:

• A)Earnings per share.
• B)Gross profit rate.
• C)Price-earnings ratio.
• D)Return on assets.

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Definitions:

Old Residence

Refers generally to a taxpayer's previous home or dwelling before moving to a new location.

Distributions

Payments made from a business, trust, or investment fund to its owners or investors, usually in the form of cash or stock.

Qualified Medical Expenses

Out-of-pocket medical costs that are deductible for tax purposes, assuming they exceed a certain percentage of the taxpayer's AGI.

Partner

An individual or entity involved in a business partnership sharing profits, losses, and responsibilities.