Chapter Quiz
Which portion of the DuPont framework shows the amount of sales generated from each dollar of assets?
- assets to equity
- profit margin
- asset turnover (Asset turnover shows the amount of sales generated in relation to assets.)
- return on equity (Return on equity is the profit earned per dollar of owner investment.)
Which type of statement is composed of percentages of yearly sales?
- common size financial statement (In a common size financial statement, all of the numbers are divided by the sales for the year.)
- income statement (The income statement does not show percentages of sales.)
- statement of cash flows
- earnings report (An earnings report does not show numbers as percentages of sales.)