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When the Net Profit of one accounting period is compared with the Revenues amount of the same period, what kind of information would you obtain?

When the Net Profit of one accounting period is compared with the Revenues amount of the same period, what kind of information would you obtain?

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1) It is called the Return on Sales. It shows the proportion of net profit on unit sales in percentage.

2) It also indicates how much expenses were incurred on $1 of sales.

3) The ratio indicates how successfully the management has controlled costs and expenses.

4) All of the above

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