Which of the Following Ratios Gives Information on the Amount

question 4

Multiple Choice

Which of the following ratios gives information on the amount of profits reinvested in the firm over the years?

• A) Sales/total assets
• B) Debt/total assets
• C) Debt/equity
• D) Retained earnings/total assets

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Definitions:

Autonomy

The quality or state of being self-governing or independent; the ability to make decisions for oneself.

Legal Precedent

A legal case that establishes a principle or rule that is followed by other courts in future cases involving similar issues or facts.

Infraction

A violation or infringement of a set of rules or regulations.

Reasoned Decision-Making Model

A systematic approach to making decisions that involves gathering information, evaluating options based on logic and reasoning, and selecting the most appropriate course of action.