Which of the following statements about a high net profit margin is FALSE?
A) It may mean that you are keeping your operating expenses under control to earn an acceptable profit.
B) It may mean that your business might need to take on debt to pay its expenses.
C) It demonstrates how effective your business is at converting sales into profit.
D) It may mean that you are capitalizing on some competitive advantage that can provide your business with extra capacity and flexibility during the hard times.
Correct Answer:
Verified
Q37: The changes in revenues and expenses caused
Q38: Before the closing entries were made at
Q39: An income statement reports which of the
Q40: Which of the following is true about
Q41: A post-closing trial balance will show
A) zero
Q43: Joe Company purchased supplies inventory for $5,000.
Q44: Return on equity is a ratio that:
A)
Q45: Which of the following errors would most
Q46: An adjusted trial balance
A) is prepared after
Q47: The Town Laundry purchased $5,500 worth of
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