Which of the Following DOES NOT Describe Gross Margin

question 24

Multiple Choice

Which of the following DOES NOT describe gross margin?

• A) It can be expressed as a percentage of net sales.
• B) It is the profit on the goods sold excluding the operating expenses.
• C) It is also referred to as gross profit.
• D) It is a performance measurement.
• E) It is a measure of return on assets.

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Definitions:

Dividend Yield

The dividend per share a company pays out to its shareholders annually, expressed as a percentage of the stock's current market price.

Return on Stockholders' Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders' equity, indicating how efficiently equity is being utilized.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically reported on the income statement.

Price-Earnings Ratio

A valuation metric for stocks, calculated by dividing the current market price by the earnings per share.