Match Each Definition That Follows with the Term (A-E) It

question 134

Multiple Choice

Match each definition that follows with the term (a-e) it defines.
-Income from operations divided by invested assets

• A)Controllable revenues
• B)Profit margin
• C)Investment turnover
• D)Return on investment
• E)Residual income

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Definitions:

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but instead reinvested in the business or used to pay off debt.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company.

Dividends

The allocation of a corporation's earnings to its shareholders, in the form of monetary distributions.

Retained Earnings

The portion of a company's profits that are kept or retained within the company to reinvest in the business or pay down debt, rather than distributed to shareholders as dividends.