Select from the Following List the Letter of the Ratio $\frac{\text {Net income }}{\text { Net sales}}$

question 90

Multiple Choice

Select from the following list the letter of the ratio title for the formula provided in the question.
-Select the letter of the ratio title that corresponds to the following formula.
$\frac{\text {Net income }}{\text { Net sales}}$

• A)Current ratio
• B)Acid-test (quick) ratio
• C)Inventory turnover
• D)Accounts receivable turnover
• E)Day's sales in average accounts receivable
• F)Debt ratio
• G)Times-interest-earned ratio
• H)Rate of return on net sales (profit margin)
• I)Rate of return on total assets
• J)Rate of return on common shareholders' equity
• K)Earnings per common share
• L)Price/earnings ratio
• M)Dividend yield
• N)Book value per common share

Determine the present and future values of annuities under various conditions including differing rates of return and payment periods.

Apply the concept of present value to evaluate job offers, insurance settlements, and cash flow scenarios.

Calculate the total amount of interest paid over the life of a loan given the principal amount, interest rate, and loan duration.

Determine the savings amount required per period to achieve a future financial goal using different rates of return.

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Definitions:

FOB Destination

A shipping term indicating that the seller bears freight charges and remains responsible for the goods until they are delivered to the buyer's location.

Freight Costs

Expenses incurred by a company to transport goods from one place to another, such as shipping charges for receiving or sending out inventory.

Trade Discount

A reduction in the list price granted by a supplier to a buyer, often based on the volume of goods purchased or to maintain a competitive advantage.

Free On Board

A shipping term indicating whether the seller or the buyer is responsible for goods that are damaged or destroyed during shipping.