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:

Rescind Agreement

To revoke, cancel, or annul an agreement, legally undoing its terms and obligations.

Remedies Available

Legal means for enforcing a right or redressing a wrong provided and sanctioned by law, including compensation, restitution, or injunctions.

Breach of Warranty

A legal term referring to the failure to fulfill the terms of a promise or guarantee made in a warranty.

Seller's Promise

A commitment by the seller to the buyer that certain conditions, such as the quality or delivery of a product, will be fulfilled.