The Gross Margin Ratio Measures Which of the Following

question 82

Multiple Choice

The Gross Margin Ratio measures which of the following?

• A)The profitability of the firm's debt.
• B)The liquidity of the firm's profit.
• C)The percent of each dollar of sales that can cover the firm's operating expenses.
• D)The percent of the assets that generate profit for the firm and that covers operating and financing expenses.

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Definitions:

Subsidiary

A business that is under the control of another business, referred to as the parent company, by holding a majority of its voting shares.

Attributable Interest

A financial term referring to the ownership interest or stake that a person or entity has in an investment, often influencing the share of profits or losses they would receive.

Consolidation

The process of combining the financial statements of two or more entities to form a single set of statements.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.