The ________ Is the Ratio of Net Income to the Investment

question 4

Multiple Choice

The ________ is the ratio of net income to the investment used to earn that net income.

• A) markup
• B) selling margin
• C) return on investment
• D) return on assets
• E) markdown

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Definitions:

Account Balance

The total amount of money in a financial account, calculated by adding all deposits and subtracting all withdrawals.

Trial Balance

A bookkeeping report that lists all the balances of the general ledger accounts of a business at a certain point in time to ensure that debits equal credits.

Cash Account

A financial account that tracks the amount of cash available, used for managing daily cash transactions.

Debt Ratio

A ratio indicating the ratio of a company's total liabilities to its overall assets.