The Ratio Obtained by Dividing Net Income After Taxes by Net

question 25

Multiple Choice

The ratio obtained by dividing net income after taxes by net sales is the

• A) return on sales ratio.
• B) acid-test ratio.
• C) return on equity ratio.
• D) earnings per share.
• E) working capital.

---

Definitions:

Psychological Contract

An unwritten agreement that defines the mutual expectations, obligations, and benefits between an employer and an employee.

Encounter Stage

The phase during which a new employee learns the values, skills, and behaviors necessary to participate effectively within an organization.

Psychological Contract

An unwritten agreement that represents the mutual beliefs, perceptions, and informal obligations between an employer and an employee.

Inflated Positive Expectations

An overly optimistic view or anticipation of outcomes that might not be realistic, often leading to disappointment.