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    Financial Accounting Study Set 24
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    Exam 4: Adjustments, Financial Statements, and the Quality of Earnings
  5. Question
    The Net Profit Margin Ratio (Profit ÷ Net Sales) Measures
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The Net Profit Margin Ratio (Profit ÷ Net Sales) Measures

Question 100

Question 100

True/False

The net profit margin ratio (Profit ÷ Net Sales) measures how much profit is earned as a percentage of revenues generated during the period.

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