Which of the Following Ratios Is the Fundamental Measure of Overall

question 90

Multiple Choice

Which of the following ratios is the fundamental measure of overall company performance?

• A) Return on equity
• B) Current ratio
• C) Asset turnover
• D) Return on sales

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Definitions:

Internal Control

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cash Shortages

Situations where the actual cash on hand is less than the expected amount, usually as a result of errors or theft.

Cash Deposit Slip

A document prepared by a depositor when making a deposit into a bank account, enumerating the cash and/or checks being deposited.

Accounts Payable Clerk

An Accounts Payable Clerk is responsible for managing the company's accounts payable records, including processing invoices, verifying financial data, and ensuring timely payments to vendors.