Which One of the Following Statements Is False Regarding the Gross

question 86

Multiple Choice

Which one of the following statements is false regarding the gross profit ratio?

• A) The gross profit ratio is calculated by dividing net sales by gross profit.
• B) The gross profit ratio is a measure of profitability.
• C) The gross profit ratio can help investors decide whether or not to buy a company's stock.
• D) The gross profit ratio should be compared with both a company's prior years' ratios and also competitor ratios.

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Definitions:

Effective Communication

The ability to convey information or ideas in a clear, efficient, and understandable manner to the intended audience.

Nonverbal Cues

Communication signals that are not spoken or written but are expressed through body language, facial expressions, gestures, and other physical behaviors.

Ambiguous Words

Words that have more than one interpretation, meaning, or usage, leading to uncertainty or vagueness.

Functions

Mathematical concepts that describe the relationship between a set of inputs and a set of possible outputs, where each input is related to exactly one output.