Which of the Following Ratios Measures the Earnings of a Company

question 65

Multiple Choice

Which of the following ratios measures the earnings of a company on each sales dollar?

• A) Return on assets
• B) Return on sales
• C) Return on inventory
• D) Return on stockholders' equity

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Definitions:

Circulation Numbers

The total quantity of copies of a publication (such as a newspaper or a magazine) distributed in a given period.

Average Fixed Costs

Average fixed costs are calculated by dividing the total fixed costs by the quantity of output produced, showing cost per unit.

MC Curves

Marginal Cost Curves, which illustrate how the cost of producing one additional unit of a good varies as the quantity of production changes.

Gasoline Prices

The cost per unit volume of gasoline, which fluctuates based on factors like crude oil prices, taxes, demand, and supply.