Which of the Following Statements Regarding the Net Profit Margin

question 59

Multiple Choice

Which of the following statements regarding the net profit margin ratio is false?

• A)The numerator is net income.
• B)The denominator is net sales or operating revenues.
• C)It measures how much of every sales dollar is gross profit.
• D)Financial analysts expect well-run businesses to maintain or improve their profit margin over time.

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