Profit growth is measured by
A)dividing the net profits of the firm by total invested capital.
B)subtracting the previous year's gross profit from the current year's gross profit.
C)calculating the difference between the previous year's profitability and the current year's profitability.
D)the percentage increase in net profits over time.
E)adding the profitability of the last two fiscal years.

Question

Quizplus · Accepted Answer

Profit growth is typically measured by calculating the percentage increase in net profits over time. This allows for a clear comparison between different time periods and helps to track the overall profitability of the firm. The other options listed do not accurately capture the concept of profit growth.

Profit Growth Is Measured by