Net Income Divided by Sales Is the Formula for Which

question 83

Multiple Choice

Net income divided by sales is the formula for which of these analytical measures?

• A) Return on assets
• B) Return on equity
• C) Earnings per share
• D) Net margin

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Definitions:

Accrued Interest Receivable

Interest that has been earned but not yet received in cash, representing an asset on the balance sheet.

Notes Receivable-Perez

A note receivable account representing money owed to the entity by Perez, typically documented through a formal promissory note.

Collateralized

Secured by an asset pledged as security for repayment of a loan, protecting the lender by providing a source of recovery in case of default.

Receivables

Amounts owed to a company by customers for goods or services that have been delivered but not yet paid for.