A Basis Point Is ________

question 36

Multiple Choice

A basis point is ________.

• A)one-thousandth of a percentage point
• B)one percentage point
• C)one-tenth of a percentage point
• D)one-hundredth of a percentage point

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Definitions:

Inventory Sold

The cost of goods that have been sold from the inventory over a specific period, which is used to calculate the cost of goods sold.

Cash Coverage Ratio

A financial metric that measures a company's ability to cover its debt obligations with its cash and cash equivalents.

Net Income

The profit or loss of a company after all revenues, expenses, taxes, and costs have been subtracted from total revenue.

Income Tax Expense

The total amount of income tax that a company is obligated to pay to federal, state, and local tax authorities.