Match the Terms with the Definitions

question 44

Multiple Choice

Match the terms with the definitions.
-Assets that are expected to be used for more than one year in the operation of a business.

• A)selling expenses
• B)quick assets
• C)average days to sell inventory
• D)book value
• E)property, plant, and equipment
• F)operating cycle
• G)quick ratio
• H)general expenses
• I)gross profit
• J)net sales
• K)multiple-step income statement
• L)inventory turnover
• M)liquidity

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Definitions:

Profit Margin

A financial metric, calculated as net income divided by revenue, that indicates the percentage of sales that exceeds the costs of goods sold.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.

Sales to Investment

A ratio that measures the efficiency of a firm in generating sales from its investments in assets.

Salaries

Regular payments made to employees for their services, typically expressed as an annual amount but paid in intervals (e.g., monthly or biweekly).