Which of the Following Could Explain an Increase in the Gross

question 19

Multiple Choice

Which of the following could explain an increase in the gross margin ratio?

• A) a decrease in bad debts
• B) decreasing prices of raw materials
• C) a decrease in depreciation on a delivery vehicle
• D) increasing advertising expenses.

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Definitions:

Solvency

The ability of an entity, whether an individual, company, or country, to meet its long-term financial commitments and debts.

Subatomic Particles

Particles that are smaller than atoms, including protons, neutrons, and electrons, which make up the atom's nucleus and electron cloud.

Electrons

Electrons are negatively charged subatomic particles that orbit the nucleus of an atom, playing a critical role in chemical reactions and electricity.

Orbitals

Regions within an atom where electrons are most likely to be found, describing the probable location of electrons around a nucleus.