The financial ratio measured as net income divided by total assets is known as the firm's:
A. profit margin.
B. return on assets.
C. return on equity.
D. asset turnover.
E. earnings before interest and taxes.
Answer: B. return on assets.
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If data mining finds a statistical correlation or relationship between two data items, then there exists a plausible relationship between those two data items in the real world.
Answer the following statement true (T) or false (F)
Which of the following is NOT included in the AMA’s code of ethics?
A. do no harm B. profitability C. foster trust D. embrace ethical values
On January 1, 2010, Gemstone Company obtained a $280,000, 10-year, 11% installment note from Guarantee Bank. The note requires annual payments of $47,544, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $30,800 and principal repayment of $16,744. The journal entry to record the payment of the first annual amount due on the note would
include: A) a credit to cash of $16,744 B) a credit to Interest Payable of $30,800 C) a debit to Notes Payable of $16,744 D) a debit to Interest Expense of $47,544
Using the information in Table J.1 and the SPT rule, what is the average past due?
A) 0 days B) greater than 0 days but fewer than or equal to 5 days C) greater than 5 days but fewer than or equal to 10 days D) greater than 10 days