A ________ Is the Ratio of Money Gained or Lost

question 1

Multiple Choice

A ________ is the ratio of money gained or lost on an investment relative to the amount of money invested.

• A)return on investment
• B)profit
• C)investment yield
• D)turnover

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Definitions:

Spontaneous Financing

Refers to funding that occurs naturally as a firm's operations grow, such as trade credit that increases with sales.

Accrual Liabilities

Obligations that a company has incurred, for which invoices have not yet been received or payment has not been made.

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Revolving Credit Agreement

A credit arrangement that allows a company or individual to borrow, repay, and borrow again up to a certain credit limit.