The Ratio That Indicates an Entity's Overall Mark-Up on Goods

question 29

Multiple Choice

The ratio that indicates an entity's overall mark-up on goods sold is the:

• A) return on inventory ratio.
• B) gross profit ratio.
• C) inventory turnover ratio.
• D) profit margin ratio.

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Definitions:

Debt Financing

A method of raising capital through the borrowing of money, which needs to be repaid at a later date, often with interest.

Lessee

An individual or entity that leases or rents property from a lessor.