Which of the Following Key Financial Ratios Is Calculated as Profit

question 60

Multiple Choice

Which of the following key financial ratios is calculated as Profit after taxes/Sales?

• A)Current debt to equity.
• B)Fixed asset turnover.
• C)Return on assets.
• D)Days sales outstanding.
• E)Net profit margin.

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Definitions:

Accounts Receivable Turnover

Accounts receivable turnover is a financial ratio that measures how effectively a company is collecting on its credit sales by comparing net credit sales with the average accounts receivable for a period.

Financial Statement Analysis

Financial statement analysis involves evaluating the financial statements of a company to assess its performance and make informed business decisions.

IRS Audit

A formal examination by the Internal Revenue Service to verify the accuracy of a taxpayer's returns and financial records.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.