Which of the Following Is the Result of Gross Profit

question 89

Multiple Choice

Which of the following is the result of gross profit divided by net sales?

• A)Debt ratio
• B)Gross profit percentage
• C)Current ratio
• D)Rate of inventory turnover

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a public market.

Cash Dividend

A payment made by a company out of its profits to its shareholders in cash, typically on a regular basis.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the issuing company, reducing the amount of stock on the open market.

Common Stock

Equity shares that represent a form of corporate ownership, entitling the shareholder to a share of the company's success through dividends and or capital appreciation.