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Profit Margin
A financial metric used to assess a company's profitability by dividing net income by net sales, usually expressed as a percentage.
Ceiling
In accounting, it refers to the upper limit placed on the value of an asset or a group of assets, often to prevent overestimation.
Principle of Conservatism
An accounting guideline where revenue and assets are not overestimated while liabilities and expenses are not underestimated.
Gross Margin
The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.
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