A component of profitability, calculated by expressing net income as a percent of net sales, is the:Multiple ChoiceAccounts receivable turnover.Merchandise turnover.Acid-test ratio.Price earnings ratio.Profit margin ratio.

Profitability Ratios)

A gross profit ratio of 55% indicates that:Multiple Choicefor each $1 of net income, the company generates $0.55 in gross profit.for each $1 of sales, the company generates $0.55 in gross profit.for each $1 of gross profit, the company generates $0.55 in net income.for each $1 of gross profit, the company generates $0.55 in sales.

Helps in evaluating the business's profitability

What type of ratios measure how effectively a firm is using its various resources to achieve profits?Multiple choice question.profitabilityliquidityleverageactivity

Gross profit is:Group of answer choicesthe amount left over after cost of goods sold is subtracted from net salesnet sales less selling expensessales less sales discountsnet sales less operating expenses