Which of the Following Transactions Will Not Decrease the Net

question 45

Multiple Choice

Which of the following transactions will not decrease the net profit margin ratio?

• A) Accruing interest expense at year-end.
• B) The recording of depreciation expense.
• C)Using cash to pay for previously accrued salaries.
• D)Accruing utilities expense at year-enD.Net profit margin = Net income ÷ Net sales (operating revenues). Previously accrued expenses have already been recognized and factored into net income; paying for these expenses impacts the balance sheet and not the income statement.

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Definitions:

Symbolic Thought

The ability to use symbols, language, or objects to represent something that is not physically present, a key aspect of human language and cognition.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed, a cognitive development milestone typically achieved in infancy.

Representational Ability

The cognitive skill to understand and manipulate symbols and abstract concepts, pivotal in language development and creative thinking.

Representational Ability

The capacity of individuals to use symbols or objects to stand for something else, critical in language development and creative thinking.