Profit Margin Is Calculated by Dividing Net Sales by Net

question 109

True/False

Profit margin is calculated by dividing net sales by net income.

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Definitions:

Ownership Equity

The owners' residual interest in the assets of a company after deducting liabilities, also known as shareholders' equity or stockholders' equity.

Date of Record

The specific date set by a corporation on which the company determines the shareholders eligible to receive dividends or other distributions.

Stock Split

A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Par Value

The face value of a bond or stock as stated by the issuer, which may differ from its market value.