The Calculation That Measures the Amount of Money an Organization

question 127

Multiple Choice

The calculation that measures the amount of money an organization receives in return for the money it spends is called the _____.

• A) cash flow
• B) net present value
• C) total investment
• D) tangible costs
• E) return on investment

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Definitions:

Yearly

Relating to or happening every year; annual.

Borrow

The act of receiving something with the intention of returning it or its equivalent to the owner at a later date.

Preferred Stock

Preferred stock is a type of equity that typically gives its holders preference over common stockholders in terms of dividends and claims on assets in the event of liquidation, but usually does not carry voting rights.

Rate of Return

The financial outcome, whether positive or negative, on an investment over a set duration, highlighted as a percentage of the investment's initial expenditure.