1. ________________________ is categorized as a profitability ratio

Select one:

a. Return on Assets Ratio

b. Current Ratio

c. Debt to Asset Ratio

d. Receivable Turnover

2. The Average collection period ratio is categorized as a ____________________________________

Select one:

a. asset utilization ratio

b. liquidity ratio

c. debt utilization ratio

d. profitability ratio

3.

When calculating the Profit Margin, if the net income is $800,000 and the sales are $8,000,000, then the profit margin is ______-

Select one:

a. 0.05%

b. 0.1%

c. 0.10%

d. 10%

4.

When calculating the Return on Assets, if net income is $400,000 and Total Assets are $1,600,000, then the Return on Assets is ________________

Select one:

a. 0.40%

b. 4%

c. 0.25%

d. 25%

5.

When calculating the Return on Equity, if net income is $400,000 and Stockholder's Equity is $4,000,000, then the Return on Assets is ________________

Select one:

a. 0.1%

b. 40%

c. 10%

d. 0.10%