QUESTION 3 A component of operating efficiency and profitability calculated by expressing net income as a percent of net sales, is the Acid-test ratio. Price earnings ratio. Merchandise turnover. Accounts receivable turnover. Profit margin ratio. QUESTION 4 Goods in transit are included in a purchaser's inventory: At any time during transit. When the supplier is responsible for freight charges. If the goods are shipped FOB shipping point. If the goods are shipped FOB destination. After the half-way point between the buyer and seller