Match the Following Statements

question 56

Multiple Choice

Match the following statements.
-Form 990-PF.

• A)Exempt from tax on unrelated business.
• B)Inappropriate definition.
• C)Exempt organization may be subject to the tax on unrelated business income.
• D)Annual information return of an exempt organization that is required to file a return and which is not a private foundation.
• E)Appropriate definition.
• F)Annual information return of a private foundation.

---

Definitions:

Net Profit Margin

A profitability ratio calculated as net income divided by revenue, indicating the percentage of each dollar of revenue that results in net profit.

Gross Margin

Gross margin is the difference between revenue and cost of goods sold, expressed as a percentage of revenue.

Return On Total Assets

A financial ratio that measures a company's profitability relative to its total assets, indicating how effectively the company uses its assets to generate profit.

Return On Equity

A financial ratio indicating the profitability of a firm relative to shareholder equity, showing how effectively equity is used to generate profits.