Which Ratio Would Be Most Helpful to a Business Owner

question 22

Multiple Choice

Which ratio would be most helpful to a business owner to measure the profit per dollar of sales?

• A)Net sales to total assets
• B)Net sales to working capital
• C)Net profit on sales
• D)Net profit to equity

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Definitions:

Consciously Recollected

The act of deliberately retrieving information or memories from one's past with awareness.

State-Dependent Learning

The principle that information learned in a particular state of mind can more easily be recalled when in the same state.

Recall Tests

Memory tests in which participants are asked to remember and reproduce information without cues.

Judgments

The mental operation of assessing, forming opinions, or making decisions based on information, reasoning, and/or emotional responses.