Accounting Just because the gross profit margin is positive does not mean that a company will be profitable. So what other factors will impact profitability besides a positive gross profit margin? Do you think that when a company has a good gross profit margin that they are guarantee to earn a net income? Explain

Accounting Just because the gross profit margin is positive does not mean that a company will be profitable. So what other factors will impact profitability besides a positive gross profit margin? Do you think that when a company has a good gross profit margin that they are guarantee to earn a net income? Explain

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter13: Sustainability Reporting

Section: Chapter Questions

Problem 11MC: Which of the following statements is most often the case? A. Socially responsible businesses tend to...

See similar textbooks

Similar questions

Explain how a business can earn a positive gross profit on its sales and still have a net loss.
Why is the profit maximization supposed not the most important goal of the company?
How would non-financial performance indicators help to improve the performance of the company? Explain in detail.
How do companies add value, and what arethe dimensions of performance that customersare expecting of companies?
Which statement is true about credits? Credits always increase the net worth of a company. Credits always indicate a detriment to the company. Credits always indicate a benefit to the company. None of the above statements are true.
Which one of the following characteristics of the positive accounting theory brings forward the problem of Opportunistic Behavior? Oa. It wants to minimize costs associated with contracts of the firm. O b. It recognizes the flexibility in choosing accounting policies by the firm. O c. It recognizes the existence of economic consequences in the firm. O d. It aims to maximize the prospects for survival of the firm.
Profitability earning is a real barometer to measure the Select one: O a. Sales of business firm O b. Effectiveness of business firm O c. None of the options O d. Cost of business firm O e. Efficiency of business firm
Profitability is a measure of an organization's profit relative to its expenses. Organizations that are more efficient will realize more profit as a percentage of its expenses than a lessefficient organization, which must spend more to generate the same profit. Profit is the amount your business gains.It is a number that remains when you subtract expenses from your revenue. Profitability measures your business's profits and helps you determine your success or failure. In other words profitability is its ability to make a profit. Changes were made in operating methods in an effort to increase profitability.In these days Banks have new competitors from many industries; they all have one thing in common, the effort to earn more profit. Innovation is very important parts of today´s business as a banker discuss your views and what can be done to make the bank financially sound, discuss the steps you can take to increase the profitability of the bank.
Profitability is a measure of an organization's profit relative to its expenses. Organizations that are more efficient will realize more profit as a percentage of its expenses than a lessefficient organization, which must spend more to generate the same profit. Profit is the amount your business gains. It is a number that remains when you subtract expenses from your revenue. Profitability measures your business's profits and helps you determine your success or failure. In other words profitability is its ability to make a profit. Changes were made in operating methods in an effort to increase profitability. In these days Banks have new competitors from many industries; they all have one thing in common, the effort to earn more profit. Innovation is very important parts of today´s business as a banker discuss your views and what can be done to make the bank financially sound, discuss the steps you can take to increase the profitability of the bank.
Can you identify a possible explanation for the company’s declining profits? If so, what is it?
Why do you believe businesses rely heavily on revenue recognition to inflate profits?
The question is attached to the image.