Match the Term with Its Definition

question 66

Multiple Choice

Match the term with its definition.
-A measure of how well a firm is controlling its cost of goods sold and operating expenses relative to sales, determined by dividing operating profits by sales

• A)accrual-basis accounting
• B)cash
• C)cash-basis accounting
• D)depreciable assets
• E)depreciation expense
• F)financial statements
• G)inventory
• H)liquidity
• I)operating profit margin
• J)return on assets
• K)return on equity

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Definitions:

Open Market

An economic system in which prices for goods and services are determined by unrestricted competition between privately owned businesses.

Capital Gains Rate

The tax rate applied to the profit from selling an asset that has increased in value.

Profit-sharing Bonuses

A type of incentive given to employees where they receive a share of the company’s profits, typically as part of their compensation package.

Seniority

The concept of giving preference to employees with longer tenure in aspects of employment such as promotions, pay increases, and layoffs.