Explain Net Profit Margin, Return on Equity, Asset Turnover?

Q: How do you calculate Fixed Asset Turnover? What is the Free Cash Flow Ratio? What is the difference…

A: The answers for the questions on accounting ratios are discussed hereunder : Fixed Assets turn over…

Q: Does the accounting (book) rate of return (ARR) method provide a valid (or, meaningful) measureof…

A:

Q: increasing the company's debts on Return on Assets (ROA) and Return on Equity (ROE

A: Debt is the liability incurred by the company by borrowing for its financial needs.

Q: Why is the income statement called the "profit and loss statement"?

A: Income Statement is called the profit and loss statement because it records all the incomes and…

Q: The ability to meet short-term obligations is termed: A) Profitability B) Solvency C) Efficiency D)…

A: Introduction: Short term period: Short term period means less than one year period.

Q: Which one of the following is a measure of long term solvency? A. Price earning ratio B. Profit…

A: Solvency refers to a firm's ability to meet its long term financial obligations or debt.

Q: a. Sales Maximization b. Asset Maximization c. Profit Maximization d. Wealth Maximization

A: Time value of money is a technique used to find the worth of money today, but that money is to be…

Q: Which balance sheet might be most useful to an investor? a. U.S. GAAP balance sheet b. IFRS GAAP…

A: IFRS is principal based.

Q: Which financial ratio under the categories of profitability, asset utilization, liquidity, and debt…

A: Financial ratio can be defined as the accounting ratio which helps the business in evaluating the…

Q: How do you show profit and loss on a balance sheet?

A: Balance Sheet is the part of financial statement which shows the financial position of the company…

Q: The elements that are directly related to the measurement of profit are assets, liabilities, and…

A: The profit is recognized by an entity at the instance where the assets are increasing, or the…

Q: Calculate RETURNED ON INVESTED CAPITAL by referring the pictures of Financial Position and Statement…

A: Please see the next step for the solution

Q: What is the relationship between Income Measurement and Asset Valua

A: Profit or loss calculation is a simplified method of calculating income. An accountant defines…

Q: Which one of the following is most closely related to the net present value profile? A: Payback B:…

A: The net present value method is used to evaluate the investment projects. We can evaluate the…

Q: Define return on total assets.

A: Financial Ratios:   Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: Explain why the income statement can also be called a “profit-and-loss statement.”

A: Income statement or profit and loss statement  Income statement or profit and loss statement is a…

Q: What have been the possible reasons for the changes in  Return of Equity (ROEs )? •Decompose the…

A: Common equity means the amount which is held by equity shareholders in a firm. It does not include…

Q: Return on equity is: the rate of return that owners earn on their investment O the relationship of…

A: Return on equity can be defined as the earning on the equity as hold by the equity shareholders of…

Q: Define current operation income?

A: Current operation income otherwise called as operating income.Operating Income: Operating income is…

Q: Explains the effect of debt on profit margin and return on assets (ROA).

A: Profit margin is net income as a percentage of sales and Return on assets is Net income as a…

Q: Why is the operating return on assets ratio also referred to as the operating returnon investment?

A: Introduction: Operating asset return is nothing but a profitability measure and it is a difference…

Q: Explain an example how to calculate rate of return on total assets.

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Q: Financial Asset at Fair Value under OCI would have its gain or loss reported at what Financial…

A: Gain or loss on Financial Asset at Fair Value under OCI will be shown as other comprehensive income…

Q: which ratio is of greater interest to the owner-manager, the rate of return on total assets or the…

A: The ratio refers to the measure that determines the relation between two numbers. In accounting, the…

Q: ?The favorable balance of profit and loss account should be Added in liabilities Added in capital…

A: Favorable Balance of Profit and Loss Account: All costs are recorded on the debit side of the…

Q: What does the current ratio inform you about a company?   A. The efficient use of assets.   B. The…

A: Current Ratio : The current ratio is the relation between the current assets and current liabilities…

Q: A measure of asset utilization is A. Sales divided by working capital b. Return on total assets c.…

A: Notes:- Formula:- Return on Assets =Net Income/Average Total Assets Concept:- The return on assets…

Q: An investment is the use of money or capital for income or​ _______. expenses profit value present…

A: An investment is an item or an asset acquired with the goal of earning income or appreciation in the…

Q: How to calculate net profit margin in pro forma balance sheet

A: Financial statements are referred as the records of the business operations and financial…

Q: asset turnover ratio?

A: Asset turnover ratio = Sales/((Total assets at the beginning of the year + Total assets at the end…

Q: Choose Current ratio Asset turnover ratio Inventory turnover ratio Receivables turnover ratio

A: Liquidity ratios: Liquidity ratios measure the short-term capacity of a company to pay its maturing…

Q: Discuss the impact of the following ratios and usefulness to users of financial statements. Gross…

A: Gross profit margin is the margin ratio calculated to help the users of financial statement…

Q: Define the term Return on Common Equity? How does it measure profitability?

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Q: Please answer with explanations asset turnover, return on total assets, return on stockholders…

A: Asset Turnover ratio represents the contribution of assets in revenue creation. Return on Assets…

Q: How is the income based valuation model important in the business? Discuss sub topics such as…

A: Income Based Valuation Approach esteem a business dependent on the past, current, or expected future…

Q: In the DuPont system, the return on total assets (asset) is equal to  (return on equity) ×…

A: The return on total assets formula is provided below: Return on Total Assets = Net Profit / Total…

Q: Why does an increase in the ratio of current assets to total assets decrease both profits and risk…

A: Current assets and current liabilities are utilized to decide the liquidity of an organization. At…

Q: True or False Asset utilization ratios describe how capital is being utilized to buy assets

A: Asset  utilization ratio = Total revenue/Average  assets

Q: Liabilities* return on assets current ratio asset turnover AR turnover

A: The ratio analysis helps to analyse the financial statements of the business.

Q: The ratio sales to working capital is a measure of

A: Working capital turnover  ratio is a measure to determine how efficiently a Company's working…

Q: Which of the following is an asset management ratio?     a) Times interest earned   b) Leverage…

A: Asset management ratios are those ratios which are used for analysing the efficiency of assets of…

Q: arbitrage profit can an investor earn on an investment value

A: In order to earn arbitrage profit we first need to decide which currency to borrow and which to…

Q: Define the term Return on Total Assets? What does it measure?

A:

Q: Where is net profit shown in balance sheet?

A: The profit of a corporation is referred to as net profits.

Q: What effect does the recognition of depreciation expense have on total assets?  On total equity

A: Depreciation expense is recorded by debiting the depreciaton expense account and crediting…