Which of the Following Ratios Is Widely Used as an Indication

question 90

Multiple Choice

Which of the following ratios is widely used as an indication of management efficiency and measures the percentage of each sales dollar that remains as profit after all expenses have been paid.

• A) Times interest earned
• B) Net profit margin
• C) Return on assets
• D) Return on equity

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Definitions:

Price Supports

Government interventions to maintain the price of a good or service at a certain level to encourage production and protect producers.

Producers' Income

The earnings or revenue received by the producers or firms from the sale of goods or services before the deduction of any expenses.

Surplus

An excess amount of a commodity or service, exceeding what is normally utilized or required.

Government

The governing body of a nation, state, or community responsible for leadership, policy making, and administration.