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S.If a firm has substantial capital or financing leases disclosed in the notes but not capitalized in the financial statement
7. Net profit margin is computed using: a. long-term debt. b. owners equity c. productive assets. d. total assets. е. revenu
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Answer #1

Answer 5: e. The total debt is understated.

Explanation: Lease is consider as liability . If lease are included in notes rather than in financial statement . The total liability or debt is understated

Answer 6: c. Pension benefit obligations.

Explanation : Pension benefit obligations are liability for employer that represents a definite commitment to pay out funds in the future

Answer 7: e. revenue.

Explanation: Net profit margin = Net profit / Sales or revenue.

Answer 8:e . sales

Explanation: Asset turnover helps to analysis that how efficient a firm uses its assets to generate sales.

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