A company's gross profit (or gross margin) was $83,750 and its net sales were $347,800. Its gross margin ratio is: Multiple Choice 4.2% 24.1% 75.9%. $83,750. $264,050. The accounting concept that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the: Multiple Choice Time-period assumption. Business entity assumption. Going-concern assumption. Revenue recognition principle. Measurement (Cost) principle. The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange, is the: Multiple Choice Accounting equation. Measurement (Cost) principle. Going-concern assumption. Realization principle. Business entity assumption