JAMB Accounting 2016 Objective — Question 19

Question 19 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2016 Objective paper, with the correct answer and a full explanation.

19. The ratio that gives the indication of the efficiency of a firm's sales with respect to gross profit is (a) gross profit margin (b) return on capital employed (c) net profit margin (d) return on equity

A. gross profit marginCorrect
B. return on capital employed
C. net profit margin
D. return on equity

Explanation

Gross profit margin is the ratio used to measure the relationship between gross profit and sales.

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