Which of the following types of measures focuses primarily on income statement information?
A)long-term solvency measures.
B)short-term liquidity measures.
C)market valuation measures.
D)profitability measures.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Profitability measures, such as return on equity or gross profit margin, focus primarily on income statement information as they assess a company's ability to generate profits from its operations. Long-term solvency measures, short-term liquidity measures, and market valuation measures involve a combination of balance sheet and income statement data.

Which of the Following Types of Measures Focuses Primarily on Income