Which of the Following Ratios Is Calculated by Dividing Net

question 22

Multiple Choice

Which of the following ratios is calculated by dividing net income by revenues?

• A) Return on equity ratio
• B) Net profit margin ratio
• C) Current ratio
• D) Fixed asset turnover ratio

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Definitions:

Foreign Companies

Companies that are incorporated or based in a country other than where they conduct the majority of their business activities or derive a substantial portion of their revenue.

Physical Inventory Worksheet

A document used to record actual inventory count and compare it against what is recorded in the accounting records.

Warehouse

A large building where raw materials or manufactured goods are stored prior to their distribution for sale.

Sales Taxes

Taxes imposed on sales of goods and services that are generally paid by the consumer.