Which of the Following Is an Expanded Form of Calculating

question 34

Multiple Choice

Which of the following is an expanded form of calculating return on investment?

• A) Profit margin ratio × Asset turnover ratio
• B) Net profit ratio × Inventory turnover ratio
• C) Gross profit ratio × EVA
• D) Asset turnover ratio × Inventory turnover ratio

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Definitions:

Period of a Note

The duration of time from when a promissory note is issued until it is due for repayment.

Contract Date

The specific date on which a contract is signed or becomes enforceable.

Maturity Date

The final payment date of a loan or financial instrument, at which point the principal (and all remaining interest) must be paid.

Notes Receivable

Claims against others, recorded by an entity, that are evidenced by promissory notes, indicating the others’ promises to pay specified amounts at predetermined dates.