10 Questions
What is one of the objectives in evaluating the gross profit rate of a business?
To determine whether the amount of gross profit is sufficient to cover operating expenses
What does the operating profit margin rate indicate?
The percentage of operating expenses to net sales
Why is the government not interested in financial statements?
Because it is not a party to any of the transactions of the business
What does the net profit margin rate present?
A general perspective of the operating performance of the business
What can be determined by computing the net profit margin rate?
The amount of income per peso investment
Who is primarily responsible for preparing and presenting financial statements?
The accountant
What happens to the average sales of a watch store owner when a 20% discount is offered?
They increase from 5 watches to 12 watches a day
What is the discount percentage given to Michelle for buying 20 jars of strawberry jam?
15%
What is the primary objective of evaluating financial statements?
To evaluate the performance of the business
What is the result of offering a discount on a particular brand of watch?
The daily profit increases
This quiz is about analyzing financial statements, specifically calculating the net profit margin rate from a given income statement. Test your understanding of financial ratios and entrepreneurial concepts.
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