Return on Investment Can Be Split into Which of the Following

question 200

Multiple Choice

Return on investment can be split into which of the following two measures?

• A) Profit margin and net income.
• B) Profit margin and investment turnover.
• C) Residual income and operating income.
• D) Investment center average assets and investment turnover.
• E) Investment center income and profit margin.

Understand the recording of business transactions in journal entries.

Understand how business transactions affect financial statements.

Analyze and correct errors in trial balances and accounting records.

Understand the setup and use of T-accounts in recording transactions.

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Definitions:

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often due to externalities, monopolies, information asymmetries, or public goods.

Opportunity Cost

The value of the next best alternative foregone as the result of making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Leisure

Leisure refers to the time spent away from work, business, or compulsory activities, allowing for rest, recreation, or personal interests and activities.

Higher Wage

A wage level that is above the average or norm, often reflective of high skill levels, demand for specific labor, or union negotiations.