The ________ Indicates the Percentage of Each Sales Dollar Remaining

question 74

Multiple Choice

The ________ indicates the percentage of each sales dollar remaining after the firm has paid for its goods.

• A) net profit margin
• B) operating profit margin
• C) gross profit margin
• D) earnings available to common shareholders

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Definitions:

Prepaid Freight

Costs paid in advance for the transportation of goods, often recorded as an asset on the balance sheet until the service is utilized.

Merchandise Inventory

Goods that a company holds with the intent to sell them as part of its primary operations.

Perpetual Inventory System

A method of inventory management where records are updated in real-time with every sale and restocking.

FOB Shipping Point

A term in shipping where the buyer assumes responsibility for the goods and shipping cost as soon as the goods leave the seller’s premises.