Calculate Return on Equity from the Following Information: Sales =

question 21

Multiple Choice

Calculate return on equity from the following information: Sales = $400,000
Expenses = $100,000
Debts incurred = $120,000
Owner's equity = $180,000

• A) 2:3
• B) 3:2
• C) 5:3
• D) 4:5
• E) 5:1

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Definitions:

Revenue Variances

The difference between actual revenue and budgeted or projected revenue.

Spending Variances

The difference between actual spending and budgeted or planned spending in various categories.

Cost Drivers

Factors that cause changes in the cost of an activity or process, which are used to allocate costs based on actual usage or consumption.

Vocational School

An educational institution that provides specialized training and education aimed at preparing students for specific trades, crafts, or careers.