Which of the Following Financial Ratios Is Not a Profitability

question 47

Multiple Choice

Which of the following financial ratios is not a profitability ratio?

• A) net profit margin
• B) gross profit margin
• C) asset turnover
• D) ROE
• E) ROI

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Definitions:

FICA-OASDI

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance; a U.S. payroll tax that funds Social Security benefits.

Federal Income Tax

A charge imposed by the national government on the yearly income of persons, businesses, trusts, and other legal bodies.

FICA-OASDI

Refers to the Social Security portion of the Federal Insurance Contributions Act tax, funding retirement, disability, and survivor benefits.

FUTA

The Federal Unemployment Tax Act, legislation that imposes a payroll tax on businesses to fund state workforce agencies.