Net Income Divided by Sales Is the Correct Formula for Calculating

question 66

Multiple Choice

Net income divided by sales is the correct formula for calculating:

• A) return on total assets.
• B) a current ratio.
• C) a liquidity ratio.
• D) profit margin on sales.
• E) a corporate evaluation.

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Definitions:

Promissory Note

A financial document in which one party promises to pay another party a definite sum of money at a specified future date or on demand.

Missing Value

A data point that is not recorded or is absent in a data set or analysis.

Simple Interest

Interest calculated on the principal amount of a loan or deposit without compounding.

Daily Closing Balance

The total amount in an account at the end of each day, taking into account all transactions and activities of that day.