Question: The gross margin ratio: Select one: A. Indicates the percent of sales revenue remaining after covering the cost of the goods sold. B. Is a

The gross margin ratio:

Select one:

A. Indicates the percent of sales revenue remaining after covering the cost of the goods sold.

B. Is a measure of liquidity and should exceed 2.0 to be acceptable.

C. Is also called the net profit ratio.

D. Is also called the profit margin.

E. Should be greater than 1 for merchandising companies.

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