The Return on Ordinary Share Capital-Equity Is Calculated by Dividing

question 18

Multiple Choice

The return on ordinary share capital-equity is calculated by dividing

• A)net income by average ordinary shareholders' equity.
• B)net income less preference dividends by average ordinary shareholders' equity.
• C)net income by ending ordinary shareholders' equity.
• D)net income less preference dividends by ending ordinary shareholders' equity.

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Definitions:

Articles of Partnership

Articles of Partnership is a document that outlines the terms, conditions, and responsibilities of each partner in a partnership.

Annual Salary

The total amount of money an employee earns in a year before deductions for taxes and other items.

Capital Balance

The amount of money that an individual or entity has contributed towards the capital of a company, often reflected in the equity section of a balance sheet.