Flashcards in Chp1-Quiz Deck (10):
Matching refers to including all expenses incurred to realize the revenues reported.
Which of the following ratios is not used in the duPont formula?
Depreciation is a noncash expense.
Depreciation is a part of
Cash flow from operating activities
The net result of the duPont formula is return on total assets.
The P/E ratio indicates the stock market's opinion of a company's prospects for growth and earnings as well as the market's perception of the firm's risk.
Although the cash flow statement using the indirect method is useful, it does not show net income for the period.
Comprehensive Income of the period is shown on the
Depreciation expense is a good example of which of the following generally accepted accounting principles?