Which of the Following Transactions Will Not Decrease the Net

question 76

Multiple Choice

Which of the following transactions will not decrease the net profit margin ratio?

• A)Accruing interest expense at year-end.
• B)The recording of depreciation expense.
• C)Using cash to pay for previously accrued wages.
• D)Accruing utilities expense at year-enD.Net profit margin = Net income ÷ Net sales (operating revenues).Previously accrued expenses have already been recognized and factored into net income; paying for these expenses impacts the balance sheet and not the income statement.

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Definitions:

Psychographic

Pertaining to the study of consumer lifestyles, attitudes, beliefs, and values to understand buying behaviors and preferences.

Occasion Segmentation

A type of behavioral segmentation based on when a product or service is purchased or consumed.

Psychographic Segmentation

The division of a market into segments based on consumer personality traits, values, attitudes, interests, and lifestyles.

Loyalty Segmentation

A marketing strategy that divides customers into groups based on their loyalty, typically measured by purchase frequency or engagement level.