Select the correct statement from the following:
A. Return on total assets can be separated into gross margin ratio and price-earnings ratio.
B. Profit margin reflects a company's ability to produce net sales from total assets.
C. Total asset turnover reflects the percent of net income in each dollar of net sales.
D. High returns on total assets are desirable.
E. Return on total assets analysis is beneficial in evaluating a company but is not useful for competitor analysis.
Answer: D
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Miranda, and Larry work as cooks at the local Fried Chicken hot spot. Miranda is the head fry cook and Larry is her assistant. Miranda deliberately misinterprets Larry’s request for more challenging tasks (such as making the cornbread puppies) and passes the message to Willie, the owner of the hot spot, that Larry is unhappy and wants to resign from the shack. This scenario is an example of which of the communication barriers discussed in the book?
a. Filtering b. Emotions c. Information Overload d. Differing Perceptions
This is not an advantage of a sole proprietorship:
A) Forming the company is easy and low cost. B) The sole proprietorship is not responsible for the company's contracts or torts. C) The sole proprietor makes all of the decisions. D) The sole proprietor receives all of the profits.
The inventory valuation method that results in the lowest taxable income in a period of inflation is the:
A. LIFO method. B. Specific identification method. C. FIFO method. D. Weighted-average cost method. E. Gross profit method.
________ take over the whole marketing job of producers, not just the selling function.
A. Export and import brokers B. Service wholesalers C. Selling agents D. Brokers E. Auction companies