Question 14 The statement, net income should reflect all items that affected the net increase or decrease in stockholders' equity during the period is consistent with which of the following concepts of income? Economic All inclusive Current operating performance Money Question 15 A measure of a company's profitability is the Current ratio Current cash debt coverage ratio Return on assets ratio Debt to total assets ratio Question 16 The calculation net income/sales is the formula for which of the following ratios Return on assets Profit margin Asset turnover Asset usage Question 17 The valuation basis used in conventional financial statements is Replacement cost Market value Original cost A mixture of costs and values Question 18 The calculation sales/average total assets is the formula for which of the following ratios Return on assets Profit margin Asset turnover Asset usage

14) The correct option is 2nd "All inclusive". The statement, net income should reflect all items that affected the net increase or decrease in stockholders' equity during the period is consistent with all the following concepts of income:
Economic
Current operating performance
Money.

15) The correct option is 3rd "Return on Assets Ratio". A measure of a company's profitability is the return on assets ratio. There are two types of profitability ratios as follows:

A. Margin Ratios

B. Return Ratios

16) The correct option is 2nd "Profit Margin". The calculation net income/sales is the formula Profit Margin.

Profit Margin = Net Income / Sales

17) The correct option is 4th "A mixture of costs and values". The valuation basis used in conventional financial statements is a mixture of costs and values.

18) The correct option is 3rd "Asset Turnover". The calculation sales/average total assets is the formula for asset turnover.

Asset Turnover = Sales/Average Total Assets