The Gross Profit Percentage Is Calculated As

question 140

Multiple Choice

The gross profit percentage is calculated as:

• A)cost of goods sold divided by net sales revenue.
• B)net sales revenue minus gross profit on sales.
• C)net sales revenue minus cost of goods sold.
• D)gross profit divided by net sales revenue.

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Definitions:

Cash Ratio

A financial metric assessing a firm's capability to meet its current obligations using its available cash and near-cash assets.

Cash on Hand

The amount of cash a company or individual has accessible for immediate use, which might be in the form of currency or liquid assets.

Current Assets

Short-term assets including cash, inventory, and receivables that are anticipated to be used or liquidated within one business cycle.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.