The DuPont Model for Calculating ROI Contains Which of the Following

question 79

Multiple Choice

The DuPont model for calculating ROI contains which of the following components?

• A)Margin
• B)Asset turnover
• C)Both margin and asset turnover.
• D)Neither margin nor asset turnover.

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Definitions:

Net Position

The difference between an entity's assets and liabilities, indicating the financial health or status of the entity.

Fund Balance

The net assets of a governmental fund calculated as the difference between its assets and liabilities, representing the cumulative results of operations.

Statement of Revenues

A financial document outlining the sources and amounts of a company's or government's income over a specific period.

General Fund

The primary operating fund of a governmental entity, accounting for all financial resources except those required to be accounted for in another fund.