In Calculating the Profit Margin, Net Income Is

question 48

Multiple Choice

In calculating the profit margin, net income is

• A) subtracted from cost of goods sold.
• B) added to profits.
• C) divided by sales.
• D) subtracted from sales.

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Definitions:

Tax Bracket

Categories that determine the rate at which income is taxed, based on the amount of taxable income.

Capital Cost Allowance (CCA)

A tax deduction in Canada for depreciable property expense, used to decrease taxable income.

Salvage Value

The anticipated market value of an asset once it reaches the end of its operational lifespan.