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    OCTOBER-23-2024-ENTREP

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    Berry Limbagan Persigas

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    © All Rights Reserved
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    OCTOBER-23-2024-ENTREP

    Uploaded by

    Berry Limbagan Persigas
    3 views1 page

    Copyright

    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
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    Download as docx, pdf, or txt
    3 views1 page

    OCTOBER-23-2024-ENTREP

    Uploaded by

    Berry Limbagan Persigas

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    OCTOBER 23, 2024 ENTREPRENEURSHIP

    Write True if the statement is correct & write False if you think the answer is not
    correct.
    _________1. The gross profit rate of the entrepreneurial venture is computed by
    dividing the cost of goods sold by net sales.
    _________ 2. The gross profit rate provides information on the cost ratio of the
    business.
    _________3. In evaluating the profitability of the entrepreneurial venture the
    evaluation must focus on the information reflected on the face of the
    balance sheet.
    _________4. The operating profit margin rate indicates information on the
    percentage of operating expenses on the net sales.
    _________5. Mr. Q is a practicing Doctor of Medicine. During the month of March
    2019 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.
    __________6. Profit is the money received from customer in exchange of
    products given to customer.
    _________ 7. The gross profit rate of the entrepreneurial venture is computed by
    dividing the cost of goods sold by net sales.
    _________ 8. The gross profit rate provides information on the cost ratio of
    business.
    _________ 9. 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.
    __________10. The operating profit margin rate indicates information on the
    percentage of operating expenses to net sales.
    __________11 The government is not interested in financial statements since it is
    not a party to any of the transactions of the business.
    __________12. The net profit margin rate presents the general perspective of the
    operating performance of the business.
    __________13. The amount of income per peso investment can be determined by
    computing the net profit margin rate.
    __________14. In normal situation, it is favorable for the business to have high
    inventory
    __________15. Preparation & presentation of the financial statements of the entity is
    the primary responsibility of an accountant.

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