BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Earnings per share ratio
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Return on equity ratio
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Net profit margin ratio
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Current ratio
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Detailed explanation-1: -What ratio is required by GAAP to be reported on the financial statements or in the notes to the statements? Return on equity ratio.
Detailed explanation-2: -Related to GAAP for Financial Ratios or Requirements. Financial Ratios (a) The Company shall at all times maintain, on a consolidated basis, a Total Debt to Capitalization Ratio of not more than 0.65 to 1.00.
Detailed explanation-3: -The following three major financial statements are required under GAAP: The income statement. The balance sheet. The cash flow statement.
Detailed explanation-4: -In addition to the amounts that are reported on the face of the financial statements, US GAAP requires that additional information be provided as notes to the financial statements. To alert the readers of these important disclosures, each financial statement is required to make reference to them.