21. A single-step and multiple-step income statement different in form and : 1267487
21. A single-step and multiple-step income statement are different in form and in the amount of net income reported.
22. A company whose sales are growing at less than the rate of inflation may actually be selling less merchandise every year.
23. A company cannot be increasing its market share if its net sales are declining.
24. Net income stated as a percentage of sales is one means of evaluating a company's ability to control its expenses.
25. A company whose future earnings are expected to rise substantially is likely to have a higher price/earnings ratio than a company whose future earnings are expected to decline.
26. From a creditor's point of view, the lower the debt ratio; the safer the creditors' position.
27. The price/earnings ratio is calculated by dividing earnings per share by the current market price of a share of the company's stock.
28. If the return on total assets ratio is substantially below the cost of borrowing, common stockholders will benefit from a high debt ratio.
29. The return on equity ratio may be either higher or lower than the return on assets ratio.
30. The current ratio may be less than, equal to, or greater than the quick ratio.