Profit Margin Is Calculated by Dividing

question 13

Multiple Choice

Profit margin is calculated by dividing

• A)profit by gross profit.
• B)profit by sales.
• C)profit by net sales.
• D)sales by profit.

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Definitions:

Cash Receipts Journal

An accounting ledger that tracks cash transactions coming into the business, documenting all cash sales and receivables.

Chart of Accounts

A structured list of all the financial accounts in the general ledger of a company, used for organizing transactions and financial data.

Signature Coffee Mugs

Customized or uniquely branded coffee mugs that often represent a company, brand, or personal statement.

Revenue Journal

An accounting ledger where revenue transactions are first recorded.