For Banks

question 90

Multiple Choice

For banks

• A)return on assets exceeds return on equity.
• B)return on assets equals return on equity.
• C)return on equity exceeds return on assets.
• D)return on equity is another name for net interest margin.

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Definitions:

Nonoperating Activities

Nonoperating activities involve the revenues and expenses that are not related to the core operations of a business.

Gross Profit Rate

The ratio of gross profit to net sales, expressing the percentage of revenue that exceeds the cost of goods sold.

Net Sales

The total revenue generated from goods or services sold by a company, minus returns, allowances, and discounts.

Gross Profit

The financial result obtained after subtracting the cost of goods sold from total revenue, indicating the efficiency of a company in managing its production and labor costs.