Match the correct ratio name from the list below labeled a through g with each formula appearing in items
-Income tax expense / income before tax
A) Return on sales
B) Quick ratio
C) Average tax rate
D) Current ratio
E) Return on assets
F) Return on equity
G) Inventory turnover

Question

Quizplus · Accepted Answer

The formula "Income tax expense / income before tax" calculates the average tax rate, which is the percentage of income before tax that is paid as tax.

Match the Correct Ratio Name from the List Below Labeled