Assuming That All Else Is Equal,which of the Following Companies

question 170

Multiple Choice

Assuming that all else is equal,which of the following companies is most profitable?

• A)A company with low gross profit percentage and low sales volume
• B)A company with high gross profit percentage and high sales volume
• C)A company with low gross profit percentage and high cost of goods sold
• D)A company with low sales volume and high cost of goods sold

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Definitions:

Summary

A brief statement or account of the main points of something, often used to provide a quick understanding or overview.

Accounting Statements

Financial reports that provide a summary of a company’s financial condition, including income statement, balance sheet, and cash flow statement.

P/E Ratios

Price-to-Earnings Ratio, a measure of a company's current share price relative to its per-share earnings.

Quick Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.