The Gross Margin Percentage Is Computed by Dividing Net Income

question 205

True/False

The gross margin percentage is computed by dividing net income before interest and taxes by sales.

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Definitions:

Stop-payment Order

An instruction given to a bank to stop a check or payment that hasn't been completed.

Writing

The act or process of producing and recording words in a form that can be read, understood, and preserved, often used legally to refer to the embodiment of agreements or contracts on a tangible medium.

Computers

Electronic devices that execute commands from software to perform a wide range of functions, from basic calculations to complex data processing.

Ordinary Care

The level of care that a reasonably prudent person would exercise in similar circumstances; a standard for negligence determination.