Return on Investment Can Be Split into Which of the Following

question 76

Multiple Choice

Return on investment can be split into which of the following two measures?

• A)Investment center income and profit margin.
• B)Profit margin and net income.
• C)Investment center average assets and investment turnover.
• D)Residual income and operating income.
• E)Profit margin and investment turnover.

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Definitions:

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Equity.

Internal Users

Individuals within an organization who use financial information to make decisions, including managers and employees.

Accounting Information

The financial data and records about a company's transactions, financial performance, and condition, used to make business decisions, prepare financial statements, and comply with financial reporting standards.

Employees

Individuals hired by a company to perform tasks in exchange for compensation, typically through wages or salaries.