Terminology Matching Profitability Ratios Rationalization Return on Assets Ratio Return on Common Stockholders' Equity Ratio Sarbanes-Oxley Act Solvency Ratios Sustainable Income The Human Element Times Interest Earned Vertical Analysis Measures of the income or operating success of a company for a given period of time Fatigue, carelessness, indifference, collusion This is a profitability measure that indicates the amount of net income generated by each dollar of assets. It is computed as net income vidad hu arane total accate A measure of the dollars of net income eamed for each dollar invested by the owners; computed as income available to common stockholders duridad hur marana common stockholder'e ait All publicly traded U.S. corporations are required to maintain an adequate system of internal control. Corporate executives must ensure the that these rnntnle are ralishla ant offertiva Alen Indanandant Measures of the ability of a company to survive over a long period of time The most likely level of income to be obtained by a company in the future Employee justifies fraud because they believe they are underpaid while the employer makes a huge profit A measure of company's solvency and ability to meet interest payments as they come due; calculated as the sum of net income, interest didlar her intorat avneneas and inee A technique for evaluating financial statement data that expresses each item in a financial statement as a percentage of a base amount