Which of the following variables indicates a measure of cumulative profitability over time?
A) retained earnings (balance sheet)/total assets
B) earnings before interest and taxes/total assets
C) working capital/total assets
D) market value of equity/book value of total debt
E) sales/total assets

Question

Quizplus · Accepted Answer

Retained earnings represent the accumulated net income of a company that has been retained, rather than distributed to shareholders as dividends, thus indicating cumulative profitability over time.

Which of the Following Variables Indicates a Measure of Cumulative