Which of the Following Transactions Will Not Decrease the Net

Multiple Choice

Which of the following transactions will not decrease the net profit margin ratio?

A) Accruing interest expense at year-end.
B) The recording of depreciation expense.
C) Using cash to pay for previously accrued salaries.
D) Accruing utilities expense at year-enD.Net profit margin = Net income ÷ Net sales (operating revenues) . Previously accrued expenses have already been recognized and factored into net income; paying for these expenses impacts the balance sheet and not the income statement.