When should an average amount be used for the numerator or denominator?
A. When the numerator is a balance sheet item or items
B. When the denominator is a balance sheet item or items
C. When a ratio consists of an income statement item and a balance sheet item
D. When the numerator is an income statement item or items
Ans: C. When a ratio consists of an income statement item and a balance sheet item
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What types of metrics measure customer satisfaction?
A. Efficiency MIS metrics B. Effectiveness MIS metrics C. Both efficiency and effectiveness MIS metrics D. Both ROI and market share
Operating leverage refers to
A) the additional chance of insolvency borne by the common shareholder. B) financing a portion of the firm's assets with securities bearing a fixed rate of return. C) a high degree of variable costs of production. D) the incurrence of fixed operating costs in the firm's income stream.