The ratio of the net income before taxes to net sales is called __________________?

Related Mcqs:

1. A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified ?

   A. 12.07 %
   B. 12.34 %
   C. 12.67 %
   D. 12.87 %

2. First Benchmark Publishing’s gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the company is within the 40% tax bracket, determine the percent of sales is their profit after taxes ?

   A. 21 %
   B. 20 %
   C. 19 %
   D. 18 %

3. Shell Philippines, a multinational company, has a total gross income for a particular year of P 50,000,000. The taxable income after taking all deductions except for depletion is P 18,500,000. What is the allowable depletion allowance for that particular year? Take percentage of gross income for oil as 22%?

   A. P 9,358.41
   B. P 9,228.45
   C. P 9,250.00
   D. P 9,308.45

4. What do you call a one-time credit against taxes ?

   A. Due credit
   B. Tax credit
   C. Credible credit
   D. Revenue credit

5. Return on investment ratio is the ratio of the_____________?

   A. Net income to owner’s equity
   B. Market price per share to earnings per share
   C. Cost of goods sold to average cost of inventory at hand
   D. Net credit sales to average net receivable

6. The common ratio is the ratio of_______________?

   A. Net credit sales to average net receivable
   B. Current assets to current liabilities
   C. Gross profit to net sales
   D. Net income to owner’s equity

7. The difference between the present and future worth of money at some time in the future is called __________________?

   A. Discount
   B. Deduction
   C. Inflation
   D. Depletion

8. A bond without any security behind them except a promise to pay by the issuing corporation is called __________________?

   A. Joint bond
   B. Debenture bond
   C. Trust bond
   D. Common bond

9. The amount of property in which a willing buyer to a willing seller for the property when neither one is under the compulsion to buy nor to sell is called __________________?

   A. Fair value
   B. Market value
   C. Good will value
   D. Book value

10. What refers to the present worth of the probable future net earnings ?

    A. Total fair value
    B. Total market value
    C. Going concern value
    D. Earning value