Refer to the Following Information to Answer the Question(s) Regarding

question 79

Multiple Choice

Refer to the following information to answer the question(s) regarding Port Royal:
Net sales $927,641
Gross profit $301,483
Net profit $48,457
Total assets $203,869
Total liabilities $74,325
-Port Royal's net profit-to-equity ratio is:

• A) 23.8 percent.
• B) 37.4 percent.
• C) 16.1 percent.
• D) 232.7 percent.

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Definitions:

Effective Accounting Information System

A system that accurately collects, records, stores, and processes financial data to produce information useful for decision-making.

Basic Principle

A foundational rule or concept that guides actions, decisions, or laws in a specific field or general context.

Accounting Information System

A system of collecting, storing, and processing financial and accounting data used by decision makers.

Data Collection

The process of gathering and measuring information on variables of interest in an established systematic fashion, enabling one to answer stated research questions.