Which of the Following Is a Profitability Measure

question 43

Multiple Choice

Which of the following is a profitability measure?

• A)Net income/Net sales
• B)Total assets/Total stockholders' equity
• C)Total liabilities/Total stockholders' equity
• D)Cost of goods sold/Average inventory

Understand how to record customer credit card payments in QuickBooks.

Comprehend the components and purpose of the QuickBooks audit trail feature.

Learn how to create and print budgets within QuickBooks.

Grasp the process of enabling and using progress invoicing for project billing.

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Definitions:

Profitable

Generating revenue that exceeds the expenses, costs, and taxes needed to sustain the activity.

Average Total Cost

The cost per unit of output, calculated by dividing the overall production costs by the number of units produced.

Profit-maximizing

A strategy or point where a business reaches the highest possible profit level with given operational limits and market conditions.

Total Revenue

the overall amount of money generated by a firm from its sales activities before any costs or expenses are subtracted.