Question
Which of the following ratios is INCORRECTLY defined? Choose one: a. Sales Growth=Sales-PreviousSales/PreviousSales b. ROE=NetIncome/Equity c. Days Inventory= Inventory/AverageDailyCostOfGoodsSold d. TIE= EBIT/InterestExpense e. ROA=(NetIncome+InterestExpense)/Assets
Which of the following ratios is INCORRECTLY defined?
Choose one:
a. Sales Growth=Sales-PreviousSales/PreviousSales
b. ROE=NetIncome/Equity
c. Days Inventory= Inventory/AverageDailyCostOfGoodsSold
d. TIE= EBIT/InterestExpense
e. ROA=(NetIncome+InterestExpense)/Assets
Step by Step Solution
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Step: 1
d T IE E BIT Interest Exp ense The E BIT Interest Exp ense ratio is incorrect because it ...
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Fundamentals Of Financial Accounting
Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby
7th Edition
1265440166, 978-1265440169
