Which One of the Following May Be the Best Measure

question 33

Multiple Choice

Which one of the following may be the best measure of company performance since it accounts for the opportunity cost of capital?

• A) EVA
• B) Net income
• C) Increase in sales
• D) Current ratio

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Definitions:

Matured

Used to describe financial instruments or investments that have reached their due date for payment or realization.

Investment

Allocation of resources, usually money, with the expectation of generating an income or profit.

Income Tax Overpayment

A situation where an individual or entity has paid more income tax to the government than was actually owed.

Canada Revenue Agency

The federal agency responsible for administering tax laws and various social and economic benefit and incentive programs delivered through the tax system for the Government of Canada.