Which of the Following Shows the Relationship Between Net Profit

question 48

Multiple Choice

Which of the following shows the relationship between net profit available to ordinary shareholders and average ordinary equity?

• A)The rate of return on ordinary shareholders' equity
• B)Inventory turnover
• C)Profit
• D)The rate of return on total assets

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Definitions:

Sequence

A specific order in which related events, movements, or things follow each other.

Liability Account

An accounting record that captures the amounts a company owes to others, including loans, payables, and other financial obligations.

Capital Account

An account on a national level that records transactions of assets, liabilities, and investments between domestic and foreign entities.

Understated

A term used when financial records show a figure to be less than the actual amount, indicating a discrepancy or error.