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  3. Study Set
    Fundamental Accounting Principles Study Set 5
  4. Exam
    Exam 5: Accounting for Merchandising Operations
  5. Question
    The Gross Margin Ratio
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The Gross Margin Ratio

Question 158

Question 158

Multiple Choice

The gross margin ratio:


A) Is also called the net profit ratio.
B) Measures a merchandising firm's ability to earn a profit from the sale of inventory.
C) Is also called the profit margin.
D) Is a measure of liquidity.
E) Should be greater than 1.

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