Multiple Choice
The gross margin ratio:
A) Indicates the percent of sales revenue remaining after covering the cost of the goods sold.
B) Should be greater than 1 for merchandising companies.
C) Is a measure of liquidity and should exceed 2.0 to be acceptable.
D) Is also called the net profit ratio.
E) Is also called the profit margin.
Correct Answer:
Verified
Correct Answer:
Verified
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