One Thing That the Return on Investment Calculation Shows Is

question 102

Multiple Choice

One thing that the return on investment calculation shows is the value of expenditures for HR activities. What else does it show?

• A)what the value added per each HR staff member is
• B)whether the HR department is effective in meeting organizational goals
• C)what the economic cost of HR to the firm is
• D)how long it will take the HR activities to pay for themselves

---

Definitions:

Permanent Accounts

Accounts that carry their balances over into the next accounting period, typically representing the asset, liability, and equity accounts.

Stockholders' Equity

The remaining value of a company's assets after all its debts have been paid, commonly known as shareholders' equity.

Prepayments

Payments made in advance for goods or services that will be received in the future, often recorded as assets on a balance sheet.

Revenue Recognition

The accounting principle that dictates the specific conditions under which revenue is recognized or accounted for.