A $150,000 Dollar Investment in a Company That Yielded a $30,000

question 38

Multiple Choice

A $150,000 dollar investment in a company that yielded a $30,000 dividend in the first year would have achieved which of the following returns on investment?

• A) 2%
• B) 5%
• C) 15%
• D) 20%
• E) 30%

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Definitions:

Deposits In Transit

Funds that have been recorded by a company but not yet by its bank, typically because the deposit was made after the bank's cutoff time.

Balance Per Bank

The amount of money a company's records show in its bank account, often reconciled with the bank's records for accuracy.

Balance Per Books

The amount shown in a company's accounting records, as opposed to the actual cash balance or balance reported by a bank.