If Profit Has Increased Over a Period of Time Relative

question 3

True/False

If profit has increased over a period of time relative to sales, and owners' investments have not increased at the same rate, then it would be reasonable to conclude that management has been efficient in increasing returns to shareholders.

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Definitions:

Qualifying Relative

A dependent who does not meet the criteria to be a qualifying child but qualifies based on relationship, income, and support tests for tax purposes.

Earn

To receive money or another form of compensation in exchange for labor or services provided.

Tax Return Form

The document or electronic form used to report income, deduct expenses, and calculate taxes owed or refunded by the taxpayer.

Taxpayer

An individual or entity that is obligated to pay taxes to a federal, state, or local government body.