There are no standard ratio formulas incorporating
A) comprehensive income.
B) profit.
C) net sales.
D) total assets.

Question

Quizplus · Accepted Answer

Comprehensive income is a broader measure of income under U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) that includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Unlike profit, net sales, and total assets, which are commonly used in various financial ratio calculations (such as profit margin, return on assets, etc.), comprehensive income is not typically used in standard financial ratio formulas. This is because comprehensive income includes items that are not realized through normal business operations, making it less useful for analyzing operational efficiency or profitability.

There Are No Standard Ratio Formulas Incorporating