The Ratio Obtained by Dividing Net Income After Taxes by Net

question 25

Multiple Choice

The ratio obtained by dividing net income after taxes by net sales is the

• A) return on sales ratio.
• B) acid-test ratio.
• C) return on equity ratio.
• D) earnings per share.
• E) working capital.

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Definitions:

Clapping Hands

The action of striking the palms together to produce sound, often used as a means of showing approval or keeping rhythm.

Localize

The process of identifying or confining something (such as a condition or sensation) to a specific area or part of the body.

Serous Otitis Media

A type of middle ear inflammation characterized by the accumulation of fluid, leading to ear fullness, discomfort, and possible hearing loss.

Tympanic Membrane

The tympanic membrane, or eardrum, is a thin layer of tissue that separates the external ear from the middle ear and vibrates in response to sound waves.