Which of the Following Ratios Is Calculated by Dividing Net

question 22

Multiple Choice

Which of the following ratios is calculated by dividing net income by revenues?

• A) Return on equity ratio
• B) Net profit margin ratio
• C) Current ratio
• D) Fixed asset turnover ratio

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Definitions:

Quantitative Method

A research technique that focuses on quantifying the collection and analysis of data, primarily using statistical tools to establish relationships and test hypotheses.

Delphi Technique

A method for forecasting and decision-making that involves a panel of experts answering questionnaires in several rounds, with anonymous summaries of their opinions provided after each round to achieve consensus.

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone in the group and is used for generating and prioritizing ideas.

Assumptions

Preliminary ideas or beliefs taken as truth without verification, often used as a basis for theoretical models or planning.