Which of the Following Is the Correct Formula for the Profit

question 1

Multiple Choice

Which of the following is the correct formula for the profit margin ratio?

• A) Net profit / Sales
• B) Net sales / Average total assets
• C) Net profit × Capital invested
• D) Operating income / Net sales

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Definitions:

Contractual Relationship

A legal bond formed between parties through an agreement, creating mutual obligations enforceable by law.

Enforceable Contract

is a legal agreement that can be implemented and compelled by law, ensuring all parties adhere to its terms.

Embezzling Funds

Illegally taking or misappropriating money or assets entrusted to one's care, typically in a workplace or official capacity.

Defamation

A false communication about someone that injures their reputation or good name.