Net Income Divided by Total Revenue Is Referred to As

question 299

Multiple Choice

Net income divided by total revenue is referred to as:

• A) The equity multiplier.
• B) Earnings per share.
• C) The retention ratio.
• D) The operating cash flow.
• E) The profit margin.

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Definitions:

Acceptor

A drawee of a draft who has promised to honor the draft as presented by signing it on its face.

Draft

A written order by which the party creating it orders another party to pay money to a third party. Also called bill of exchange.

Instrument

A formal legal document that serves as evidence of a fact, act, or obligation, such as a deed, will, or contract.

Insane

A term describing severe mental illness or insanity, legally signifying inability to understand or control one's actions.