The Ratio That Is the Fundamental Measure of Business Performance

question 44

Multiple Choice

The ratio that is the fundamental measure of business performance is

• A) EPS - earnings per share
• B) ROCE - return on capital employed
• C) ROE - return on equity
• D) Leverage ratio
• E) Gross profit margin ratio

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Definitions:

Worksheet Column

A vertical section of a worksheet used in accounting and finance to organize data, calculations, or financial information systematically.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use.

Unearned Service Revenue

Income received by a company for services that have not yet been performed or delivered.

Correcting Entry

An accounting entry made to correct an error in the financial statements.