Question & Answer: Profitability tests are an important measure of a company's operating success. These tests include(Mark all that appl…..

Profitability tests are an important measure of a company’s operating success. These tests include(Mark all that apply). Each incorrect answer results in a negative point mark.

Select one or more:

a. Acid-test (quick) ratio.

b. Times interest earned ratio.

c. Cash flow margin.

d. Times preferred dividends earned ratio.

e. Net income to net sales.

f. Inventory turnover.

g. Return to average common stockholders’ equity.

h. Earnings per share of common stock.

i. Rate of return on operating assets.