Match the Ratios with Their Formulas by Entering the Appropriate $\frac{\text {Net income }}{\text { Net sales}}$

question 267

Multiple Choice

Match the ratios with their formulas by entering the appropriate letter in the space provided.
- $\frac{\text {Net income }}{\text { Net sales}}$

• A)Current ratio
• B)Current cash debt coverage
• C)Profit margin
• D)Asset turnover
• E)Price-earnings ratio
• F)Times interest earned
• G)Inventory turnover
• H)Average collection period
• I)Average days in inventory
• J)Payout ratio

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Definitions:

Floor Space

The total area available for certain purposes within a building, measured in square feet or square meters.

Contribution To Overhead

The portion of sales revenue that exceeds variable costs, contributing towards covering fixed costs and generating profit.

Indirect Expenses

Costs that are not directly tied to the production of goods or services, such as utilities, rent, and administrative salaries.

Indirect Costs

Expenses that are not directly attributable to a specific project or activity but are necessary for the general operation of a business.