A Component of Operating Efficiency and Profitability, Calculated by Expressing

question 202

Multiple Choice

A component of operating efficiency and profitability, calculated by expressing Net Income as a percent of Net Sales, is the:

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

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Definitions:

University

An institution of higher education and research, which grants academic degrees in various disciplines.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market without any close substitutes, holding significant market power.

Production Function

An equation, table, or graph that shows the maximum output that can be produced with a given set of inputs, based on the technology available.

Labor

Human endeavor, incorporating both the physical and the mental, aimed at producing goods and services.