Operating Margin Is Defined As

question 9

Multiple Choice

Operating margin is defined as:

• A) operating income or loss divided by net sales revenues.
• B) operating income or loss divided by total operating expenses.
• C) net sales revenues divided by net income or loss.
• D) net assets divided by net liabilities.

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Definitions:

Total Current Liabilities

The sum of all liabilities of a company that are due within one fiscal year.

Statement Of Cash Flows

A financial document that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquid assets available for running its operations.

Discontinued Operations

Parts of a company's core business or units that have been sold, disposed of, or ceased operations, which are reported separately in financial statements.