What Does It Mean If an Organization's Human Capital ROI

question 31

Multiple Choice

What does it mean if an organization's human capital ROI is $3?

• A) For every dollar an organization invests in human capital, the employees will generate $3 in return.
• B) For every dollar an organization invests in human capital, the employees will generate $3 in revenue.
• C) For every dollar an organization invests in human capital, the employees will generate $3 in capital assets.
• D) For every dollar an organization invests in human capital, the employees will generate $3 in productivity.

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Definitions:

General Ledger

A comprehensive accounting record of all transactions that affect a company, summarized by account.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to check that debits equal credits in the double-entry accounting system.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Accounts Payable

The amount a company owes to suppliers or vendors for goods or services received but not yet paid for.