Profitability measures focus on relationships between key income statement and balance sheet accounts.

Name: Profitability measures focus on relationships between key income statement and balance sheet accounts.
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Question

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Profitability measures, such as return on assets (ROA) and return on equity (ROE), analyze the relationship between income statement items (such as net income) and balance sheet items (such as total assets or equity). Therefore, the statement is true.

Profitability Measures Focus on Relationships Between Key Income Statement and Balance