Question
8. Which two ratios are used in the DuPont system (13 ratios) to measure return on assets? A.Return on assets and asset turnover B.Profit margin
8. Which two ratios are used in the DuPont system (13 ratios) to measure return on assets? A.Return on assets and asset turnover B.Profit margin and asset turnover C.Return on total capital and the profit margin D.Inventory turnover and return on fixed assets
9. Asset utilization ratios A. Relate balance sheet assets to income statement sales B. Measure how much cash is available to reinvestment into current assets. C.Are most important to stockholders D. measure the firm's ability to generate a profit on sales
10. Profitability ratios allow one to measure the ability of the firm to earn an adequate return on sales, total assets and stockholder's equity TRUE or FALSE?
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