Gross Profit Margin Is an Important Ratio of Merchandising Firms

question 34

Multiple Choice

Gross profit margin is an important ratio of merchandising firms because:

• A)their investments in real property are high.
• B)cost of goods sold is usually the largest expense.
• C)selling expenses,like advertising,are usually quite high.
• D)it measures their ability to collect receivables.
• E)it measures their ability to use total assets.

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