If You Multiply Sales Profit Margin by Asset Turnover,you Obtain

question 12

Multiple Choice

If you multiply sales profit margin by asset turnover,you obtain:

• A) A meaningless number
• B) A metric that describes the profit generation efficiency of new assets
• C) Return on assets
• D) Return on shareholders equity

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Definitions:

Sales

Revenue generated from goods or services transacted by a company.

Product Warranty

A guarantee provided by a seller that a product will meet certain performance and quality standards or will be repaired or replaced within a certain period.

Warranty Repairs

Services provided to repair or replace products that fail to meet certain standards or conditions specified in a warranty agreement.

Adjusting Entry

Journal entries made in accounting at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.