A Component of Operating Efficiency and Profitability,calculated by Expressing Net

question 329

Multiple Choice

A component of operating efficiency and profitability,calculated by expressing net income as a percentage of net sales,is the:

• A) Acid-test ratio.
• B) Merchandise turnover.
• C) Price-earnings ratio.
• D) Accounts receivable turnover.
• E) Profit margin.

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Definitions:

Donee Beneficiary

In contract law, a person who benefits from a contract made between two other parties, where the intention is to gift the benefit or performance.

Promisee

A person to whom a promise is made or directed, particularly in a legal contract.

Familial Relationship

A social or blood connection existing between two or more people who are considered to be part of the same family unit.

Recognized

Generally refers to the acceptance or acknowledgment of something as valid, legal, or official.