Regarding the Profit Margin Ratio,which of the Following Statements Is

question 23

Multiple Choice

Regarding the profit margin ratio,which of the following statements is incorrect?

• A) The higher the profit margin ratio, the more sales dollars end up as profit.
• B) The profit margin ratio is computed by dividing net sales by net income.
• C) The profit margin ratio shows how much net income a business earns on every $1.00 of sales.
• D) The profit margin ratio focuses on the profitability of a company and is often reported in the business press.

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Definitions:

Deviant Use

The adoption of technological tools or other resources in ways that diverge from their intended or socially accepted purposes.

Identity Theft

The illegal acquisition and use of someone's personal information, typically for financial gain.

Corporate Insiders

Individuals within a company who have access to confidential information or influential positions, often referring to executives, directors, and significant shareholders.

Eastern European

Pertaining to the geographic region of Europe lying between the central part of the continent and Russia, characterized by diverse cultures, languages, and histories.