The Profit Margin Ratio Indicates the Amount of Net Income

question 131

Multiple Choice

The profit margin ratio indicates the amount of net income achieved for each:

• A)collection on a receivable.
• B)dollar of inventory.
• C)dollar of total assets.
• D)dollar of sales.

Understand the importance of providing valued goods or services in a market economy for earning high wages.

Assess the effects of automation on employment and production costs.

Differentiate the causes and outcomes of employment discrimination.

Understand the consequences of employment discrimination on wages and economic efficiency.

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Definitions:

Interest Receivable

The amount of interest that has been earned but not yet received in cash.

Total Proceeds

The total amount received from a transaction, including the sale of assets, securities, or other property, before any deductions or expenses.

Sale

The exchange of a good or service for money; a transaction between two parties where the buyer acquires ownership of the item.

Interest Revenue

Income earned from lending money or other types of investments that yield interest.