Examlex
Which of the following statements is MOST accurate?
Return On Equity
A financial ratio that measures the amount of net income returned as a percentage of shareholders' equity, indicating the profitability of a company relative to owner's investments.
Profitability Ratio
A financial metric used to evaluate a company's ability to generate income relative to its revenue, operating costs, balance sheet assets, or shareholders' equity.
Budget
An estimate of income and expenditure for a set period of time, often used for planning and managing finances.
Operating Budget
An estimation of the revenue and expenses over a specified future period of time, operationalizing a company's financial plan.
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