Net Income Divided by Net Sales Is The

question 132

Multiple Choice

Net income divided by net sales is the:

• A) Return on total assets.
• B) Profit margin.
• C) Current ratio.
• D) Total asset turnover.
• E) Days' sales in inventory.

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Definitions:

Income Statement

A financial statement showing a company's revenues, expenses, and net income or loss over a specific period.

Other Income

Income derived from sources other than a company's primary business operations, such as interest or rental income.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain period.

Record Payments

The process of documenting all money transfers made to settle debts or for purchases in the accounting records of a company.