________ Can Be Defined as the Rate of Return That

question 81

Multiple Choice

________ can be defined as the rate of return that the firm makes on its invested capital, which is calculated by dividing the net profits of the firm by total invested capital.

• A) Profitability
• B) Performance
• C) Cash flow
• D) Efficiency

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Definitions:

Cash Receipts Journal

An accounting journal used to record all receipts of cash, including sales made for cash and payments received from debtors.

Accounts Receivable Journal

A ledger used to record sales transactions where payment is to be received in the future, detailing each customer’s purchase on credit.

Purchases Journal

A specialized accounting journal used to record the purchasing of goods and services on credit.

Promissory Note

A financial instrument in which the writer promises in writing to pay a determinate sum of money to the payee under specific terms.