Which of the following is a measure of profitability?a. Quick (acid-test) ratiob. Net salesc. Inventory turnoverd. Return on assets (ROA)

Q: Which of the following is NOT one of the ratios in Profitability group? Select one: a. Quick ratio…

A: Profitability ratios are those ratios which helps in measuring and determining the profitability of…

Q: r to create a common size statement for the Statement of Profit and Loss, all items must: a. Divided…

A: The correct answer is  e. Divided by sales

Q: In generating a pro forma balance sheet, on what is the percentage of salesmethod based?

A: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the…

Q: Explain the calculation procedures for and significance of each of the following:  a. Return on…

A: a. Return on sales: It is a financial ratio that state how efficiently an organization is earning…

Q: Calculate the gross profit and the sales figures using the income statement approach.

A: Income statement approach refers to the approach which is used to determine the gross profit and it…

Q: The base for inventory in a vertical analysis is:a. total current assets.b. inventory.c. total…

A: Answer:   Option d.

Q: Terminology Matching Profitability Ratios Rationalization Return on Assets Ratio Return on Common…

A: Profitability Ratios - Measures of income or operating success of the company for a given period of…

Q: What financial ratio is predominantly used to determine profitability?

A: Return on Investment: Return on Investment (ROI) is a performance measuring ratio utilized to assess…

Q: All of the following are the factors affecting the gross profit except O cash flow O volume O…

A: Gross Profit = Sales revenue - Cost of goods sold

Q: Which of the following financial ratios is not a measure of operating profitablitlity? Return on…

A: Formula: Return on Assets = Net income / Total Assets.

Q: Which of the following assumptions is assumed in the percent of sales forecasting method?     All…

A: The percent of sales method is a financial forecasting system in which all of a business's accounts…

Q: Which of the following levels of profitability in a multiple-step income statement represents…

A: Gross margin (gross profit): Gross margin is the amount of revenue earned from goods sold over the…

Q: Explain whether the following situations, taken independently, would be favorable or unfavorable: (…

A: Favorable is the condition that is positive for a business. This implies that the variance or the…

Q: Which inventory method provides a better matching ofcurrent costs with sales revenue on the income…

A: Inventory valuation is a method of finding the actual cost of the goods left unsold at the end of a…

Q: What does the Total-Assets-Turnover Ratio measure?

A: The asset turnover ratio computes the value of the benefits or income of an organization comparative…

Q: Which of the following ratios is not used to analyzeprofitability?a. Net profit margin ratio.b.…

A: Financial ratio analysis: It can be defined as an analysis tool that is based upon the relative…

Q: Which inventory system provides a better matching of revenue and expenses - Weighted Average, Moving…

A: Following is the answer to given problem

Q: Describe implications of valuing inventory at net realizable value for financial statementsand…

A: Net realizable value means the value at which the inventory can be sold in the market reduced by the…

Q: Options I have for denominator are - average accounts receivable, net average total assets cost…

A: The profit margin ratio can be calculated by dividing profit by net sales. It indicates the…

Q: Comparative Profit and Loss Statement:

A: Joint costs are costs incurred up to the point of separation of Products. In this case, joint costs…

Q: Which of the following is NOT an efficiency ratio us financial statement review? OOC Operating…

A: Efficiency ratio how much is the firm efficient and more efficiency mean more profit and more growth…

Q: Which of the following is a measure of profitability? Select one: a. Inventory turnover b. Return on…

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

Q: The receivables turnover ratio is a measure of: Multiple Choice O O O Asset value. Profitability.…

A: Introduction: Receivables turnover ratio The receivables turnover ratio evaluates the effectiveness…

Q: Describe the entry to adjust from cost to net realizable value for inventory write-downs. What…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Which ratio can provide an indication of the salability of the company's products?

A: Accounting ratios, often known as financial ratios, describe the correlations between the figures on…

Q: Which of the following is not an element of the financial statements?A. future potential sales price…

A: Financial statements seem to be reports generated by a corporation's management to demonstrate the…

Q: Which of the following ratios is a measure of solvency? Multiple Choice Total asset turnover.…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: The following ratios are indicators of liquidity ,except_______   Group of answer choices current…

A: Liquidity of firm is meausred by ablity to satisfy its short term obligations as they come due.

Q: Which of the following would calculate Net Income or Net Loss? O Gross Profit - Operating Expenses O…

A: Net income is calculated as the Sales-Cost of goods sold-Operating expense Where Gross profit is…

Q: 1. Provide a Liquidity Ratio Analysis based on the current Ratio. 2. Provide a Profitability ratio…

A: Ratio Analysis is the analysis of the financial statements of the company which determines the…

Q: The accounts receivable turnover and inventory turnover are used to analyze O long-term solvency. O…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Please Calculate and interpret the following ratios Activity: Inventory Turnover , Receivables…

A: Ratio analysis refer to the evaluation of financial ration in order to get idea about profitability,…

Q: The inventory turnover ratio a. measures management’s ability to productively employ all of…

A: No, option “d” is not the correct answer.

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: RATIO CALCULATIONS Assune the following relationships for hhe Brauer Cop Sales total assets Retum on…

A: Ratio analysis is the study of financial statements to determine the financial health and the…

Q: . Which of the following figures from a firm’s financial statements should be used as itsflow rate…

A: In the above question we have asked about inventory turns which is as below.

Q: Which of the following is a solvency ratio?   a. Times interest earned. b. Inventory turnover ratio.…

A: The correct option is (A) Times Interest Earned   Explanation: This ratio is the measure of a…

Q: When inventory is sold on account, which of the following is true? Operating cash flows are…

A: When inventory has been sold out , the inventory would be decrease with cost price , account…

Q: When examining the current ratio and looking at the company's liquidity, which of the following…

A: Ratio analysis: Ratio analysis is a tool that establishes a relationship between the different…

Q: 1. Common Size Income Statement a. How are the ratios computed? b. How are the ratios in the…

A: Note: Since you have asked multiple questions we will solve the first question for you. If you want…

Q: What item flows from the income statement to the statement of retained earnings?a. Cashb.…

A: Income Statement means a statement which provides details of income and expenses for a particular…

Q: Which of the following is included in the calculation of the quick (acid-test) ratio?a. Inventory…

A: While Calculating the quick ratio, only quick assets are taken into consideration

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: a. Calculate the return on assets. (Ente b. Calculate the operating profit margin c. Calculate the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…