Terminology Matching - Academic Resources Terminology Matching Ö Profitability Ratios Terminology Matching Rationalization Return on Assets Ratio D Answered! Sarbanes-Oxley Act Return on Common Stockholders' Equity Ratio Solvency Ratios Sustainable Income The Human Element erminology Matching Times Interest Earned Vertical Analysis All publicly traded U.S. corporations are required to maintain an adequate system of internal control. Corporate executives must ensure the that those controle are reliable and effective Alen Independent outside Fatigue, carelessness, indifference, collusion Employee justifies fraud because they believe they are underpaid while the employer makes a huge profit A technique for evaluating financial statement data that expresses each item in a financial statement as a percentage of a base amount The most likely level of income to be obtained by a company in the future This is a profitability measure that indicates the amount of net income generated by each dollar of assets. It is computed as net income divided by average total assets A measure of the dollars of net income earned for each dollar invested by the owners; computed as income available to common stockholders divided by average common stockholder's equity Measures of the ability of a company to survive over a long period of time Measures of the income or operating success of a company for a given period of time A measure of company's solvency and ability to meet interest payments as they come due; calculated as the sum of net income, interest ovnences and income tav ovnence divided by interact ovnence