The Profitability Ratio That Measures the Return That Shareholders Earned

question 91

Multiple Choice

The profitability ratio that measures the return that shareholders earned on their investment equity they invested in the firm is the:

• A)operating profit margin
• B)return on equity
• C)net profit margin
• D)return on assets

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Definitions:

Depreciation Expense

The calculated apportionment of the price of a tangible asset over the duration it is useful.

Components

The individual parts or elements that make up a larger product, system, or machine.

Depreciated Separately

An accounting method in which assets are depreciated individually, based on their own useful life and depreciation rate, rather than being grouped together with other assets.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for financial statements.