The Return on Equity Ratio Under the DuPont Framework Is

question 21

Multiple Choice

The return on equity ratio under the DuPont framework is computed as

• A) Net income/Revenue
• B) Revenue/Assets
• C) Assets/Equity
• D) Net income/Equity

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Definitions:

Normal Balance

The side of an account (debit or credit) that is expected to have a higher balance based on the accounting equation.

Asset Account

An account on a balance sheet representing tangible or intangible items of value owned by a company.

Trial Balance

A ledger balance sheet summarizing all accounts, showing equal totals for both credit and debit columns.