Profit Margin Is Defined as the Ratio of Earnings to

question 14

Multiple Choice

Profit margin is defined as the ratio of earnings to

• A) Total assets
• B) Total operating revenue
• C) Total of interest-bearing and non interest-bearing liabilities
• D) Total gross margin

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Definitions:

Short-Term Debt

Borrowings that are due for repayment within one fiscal year or operating cycle.

Marketable Trading Investments

Financial assets that are purchased with the intention of selling them in the short term to profit from price fluctuations.

Unrealized Loss

A decrease in the value of an investment that has not yet been sold and therefore not officially recorded as a loss in the accounting records.

Realized Losses

Refers to the loss recognized when assets are sold for a price lower than their original purchase price.