Which of the following statements about profitability measures is NOT generally true?
A)Other things equal,the firm and other investors prefer higher profitability ratios.
B)Profitability measures use values from the firm's income statement.
C)Profitability measures use values from the firm's balance sheet.
D)All of the above are true.

Question

Quizplus · Accepted Answer

Profitability measures typically use values from the income statement, such as net income or gross profit, but not values from the balance sheet, which would be used for liquidity or solvency measures. Therefore, statement C is not generally true.

Which of the Following Statements About Profitability Measures Is NOT