Given the Following Data: in a Vertical Analysis, Net

question 98

Multiple Choice

Given the following data: In a vertical analysis, net income would be expressed as:

• A) 18%.
• B) 45%.
• C) 30%.
• D) 82%.

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Definitions:

Journal Entries

The recordation of financial transactions in a company’s accounting system that involves at least one debit and one credit entry.

Net Profit Margin

A financial ratio that shows the percentage of profit a company generates from its revenues.

Operating Income

Earnings before interest and taxes, representing the profit generated from a company's core business operations.

Net Income

The profit a company generates after all expenses, taxes, and costs have been subtracted from total revenue, indicating financial health.