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2 years ago

________ measures the percentage of sales revenue a firm is able to retain after all expenses are deducted from gross revenues.

1 answer:

8 0

Net Profit Margin measures the percentage of sales revenue a firm is able to retain after all expenses are deducted from gross revenues.

What is Net Profit Margin?

A financial measure called net profit margin can be used to determine what much of a company's total revenue is profit. It gauges how much net profit a business makes for every dollar of revenue generated. The ratio of net profit to total sales, stated as a percentage, is known as the net profit margin.

Net profit is determined by subtracting all business costs from net income. A percentage is the outcome of the profit margin computation; for instance, a 10% profit margin indicates that for every $1 in revenue, the company makes $0.10 in net profit. Revenue represents the entire sales of the company in a period.

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If a firm is a price taker, then the demand curve for the firm's product is

Vlad [161]

Answer:

The correct answer is option a.

Explanation:

A price taker firm does not decides the price of the product. The price is generally decided by the market forces. The firm gets the price and has to decide the output to produce at that price. The demand curve, in this case, is perfectly elastic.

If a firm increases price the consumers will move to other lower-priced firms. Firms in a perfectly competitive market are price takers. Firms in the imperfect competition are price makers.

7 0

3 years ago

An accelerated depreciation method: A) Recognizes more depreciation expense in the early years of an asset's useful life and les

Rudik [331]

Answer:

The correct answer is letter "A": Recognizes more depreciation expense in the early years of an asset's useful life and less in the later years.

Explanation:

The accelerated depreciation method is an approach of calculating the use of an asset over time that allocates a higher value of the asset's aging during its first years since during that time the asset is more operative and allocates a smaller amount of the asset's use during later years when the asset is near its disposal. This method is used for accounting purposes. There are two main accelerated depreciation approaches: the Double Declining Balance (DDB) and the Sum-of-the-Year-Digits (SYD).

7 0

3 years ago

Which of the following is not a legal characteristic of a corporation? A. Transerferable Shares. B. Perpetual life. C. Legal pro

Shtirlitz [24]

A corporation is a separate entity where the owners are called stockholders. Its legal characteristics are as follows. First, perpetual life where it can continue to function even if one stockholder dies. Second, the stockholder can transfer his shares to another person. Third, the corporation can only offer its corporate assets to creditors and personal assets of the stockholder is not part of the corporation. Therefore, the answer is C, which states that corporation has a legal protection from lawsuits where in fact, a corporation can sue and be sued.

8 0

4 years ago

Read 2 more answers

The account balances of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned $944,970 Office expense 217

Verdich [7]

Answer:

Retained earnings as of May 31, 20Y6 = $474,240

Net Assets = Total Owners' Equity = $609,240

Explanation:

To do this, the income statement is first prepared to determine the Retained earnings as of May 31, 20Y6 as follows:

Paradise Travel Service

Income Statement

for the year ended May 31, 20Y6

Particulars $

Fees earned 944,970

Office expense (217,345)

Miscellaneous expense (18,900)

Wages expense (453,585)

Net income 255,140

Cash dividends paid (35,900)

Retained earning for the year 219,240

Retained earnings as of June 1, 20Y5 255,000

Retained earnings as of May 31, 20Y6 474,240

The Balance Sheet is now prepared as follows:

Paradise Travel Service

Balance Sheet

for the year ended May 31, 20Y6

Particulars $

Fixed Assets

Land 302,000

Current Assets

Cash 253,375

Accounts receivable 66,150

Supplies 11,340

Total Assets 632,865

Liability

Accounts payable (23,625)

Net Assets  609,240 

Owners' Equity:

Common stock 135,000

Retained earnings as of May 31, 20Y6 474,240

Total owners' equity  609,240 

Note that Net Assets and Total Owners' Equity are both equal to $609,240. This is as required in accounting and it shows the Balance Sheet is accurately prepared.

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3 years ago

What annual fees will you typically pay for your mutual fund investment

AlexFokin [52]

A mutual fund is a fund made up of different stocks. It can be purchased through a discount broker just like stocks. Mutual funds are load and no load funds. A load fund charge a certain percentage up front and should never be purchased. Most mutual funds do not have a buying or selling commission but most brokers will charge you a commission if you trade them too often. Although you can purchase a mutual fund at any time during the day, the trade will only be executed at the end of the day. You only get information about the price (NAV) of a mutual fund at the end of the day. Mutual funds typically charge an annual fee of about 1%-2% per year of your investment to manage the fund.

An ETF is similar a mutual fund in that stocks make up the ETF but it is traded like a stock in that the price will change during the day and you can buy or sell it at anytime and the trade will occur quickly. The brokerage charges you a commission that is the same as stocks but the expense fee is typically less than 1/2% annually. ETFs generally track an index and contains all the stocks within that index.

The most common ETF is the Spider ETF (SPY) which tracks the S&P500 index, pays your share of dividends that each of the 500 stocks in the index pays (currently 1.89% annually), and has a very low expense fee of 0.10% annually

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3 years ago