A Sign(s)of Increasing Earnings Quality Is(are)

question 55

Multiple Choice

A sign(s) of increasing earnings quality is(are) :

• A)improving gross margin to sales ratio.
• B)declining operating expenses to sales ratio.
• C)improving operating income to sales ratio.
• D)all of the above.

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Definitions:

Downward-Sloping

Characteristic of a graph or curve that shows a decrease in one variable as another variable increases, commonly seen in demand curves.

Marginal Revenue

The extra revenue earned by selling an additional unit of a product or service.

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of it that consumers are willing and able to purchase at each possible price.

Marginal Revenue

The increase in total revenue that results from selling one additional unit of a product or service.