ENTREP TRUE OR FALSE

The operating profit margin rate indicates the percentage of operating expenses to net sales. THIS IS ​ ​ ​ ​ (a)  

• False
• True

The gross profit rate of the entrepreneurial venture is computed by dividing the cost of goods sold by net sales. THIS IS ​ ​ ​ (a)  

• False
• True

In evaluating profitability, the evaluation must focus on the information reflected on the face of the balance sheet. THIS IS ​ ​ (a)  

• False
• True

The gross profit rate provides information on the cost ratio of the business. THIS IS ​ ​ (a)  

• False
• True

One of the objectives in evaluating the gross profit rate of the business is to determine whether the amount of the gross profit is sufficient to cover the operating expenses. THIS IS ​ ​ (a)  

• False
• True

Mr. QUE is practicing his profession in a far-flung area of his town. He received Professional Fees amounting to P 1,000,000 and total expenses of P250,000. The net income of Mr. Q is P 750,000. THIS IS ​ ​ (a)  

• False
• True

Profit is the money received from the customer in exchange for products given to the customer. THIS IS ​ ​​ ​ (a)  

• False
• True

The operating profit margin rate indicates the percentage of operating expenses on net sales. THIS IS ​ ​​ (a)  

• False
• True