________ Indicates Management's Effectiveness in Managing the Firm's Income Statement

question 83

Multiple Choice

________ indicates management's effectiveness in managing the firm's income statement.

• A) Gross profit margin
• B) Operating profit margin
• C) Net profit margin
• D) Return on assets

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Definitions:

Critical Thinking

Critical Thinking is the analytical process of objectively evaluating information to make reasoned judgments and solve problems.

Investment

The act or method of distributing resources, typically funds, with the aim of earning a return or gaining financial profit.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories.

Tangible Capital

Physical assets possessed by a business that are used in producing goods or services, such as buildings or machinery.