Which of the Following Is the Profitability Ratio That Is

question 78

Multiple Choice

Which of the following is the profitability ratio that is calculated by dividing net income after taxes by revenue?

• A) debt-to-equity ratio
• B) current ratio
• C) return on sales
• D) net profit margin ratio

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Definitions:

Federal Unemployment Tax

A tax paid by employers to fund the government's unemployment benefits.

Federal Unemployment Tax Rate

The rate at which employers are taxed by the federal government to fund the unemployment benefits and administrative costs of the federal unemployment insurance program.

Current Liabilities

Short-term financial obligations that are due within one year or within the company's operating cycle, whichever is longer.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and equity at a specific point in time, reflecting its financial standing.