Puffy's Pastries Generates Five Cents of Net Income for Every

question 77

Multiple Choice

Puffy's Pastries generates five cents of net income for every $1 in sales.Thus,Puffy's has a _____ of 5%.

• A)return on equity
• B)return on assets
• C)Du Pont measure
• D)profit margin
• E)total asset turnover

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Definitions:

Bank Reconciliation

This is a process of matching and comparing an organization's financial records with the bank statements to ensure consistency and accuracy.

Deposits In Transit

Funds that have been recorded by a company but not yet by its bank, typically because the deposit was made after the bank's cutoff time.

Balance Per Bank

The amount of money a company's records show in its bank account, often reconciled with the bank's records for accuracy.

Balance Per Books

The amount shown in a company's accounting records, as opposed to the actual cash balance or balance reported by a bank.