Match each statement to the item listed below.
-Gross margin less operating expenses
A)Current assets
B)Current liabilities
C)Gross margin
D)Income from operations
E)Intangible assets
F)Long-term investments
G)Long-term liabilities
H)Net profit margin

Question

Quizplus · Accepted Answer

Income from operations is calculated by subtracting operating expenses from gross margin.

Answer: H
 Net profit margin is calculated by dividing net income by net sales, which is a measure of overall profitability. None of the other items listed provide a measure of profitability.

Match Each Statement to the Item Listed Below