What Additional Information Is Needed to Calculate the Rate of Return

question 34

Multiple Choice

What additional information is needed to calculate the rate of return on investment if income from operations is known?

• A) invested assets
• B) residual income
• C) direct expenses
• D) sales

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Definitions:

Financial Flexibility

The ability of a company to adapt its financial policies and make decisions to ensure survival and growth.

Issuing Stock

This refers to the process by which a company sells new shares to investors in order to raise capital.

Accounting Science

The discipline that studies the concepts, rules, and processes followed in accounting to collect, analyze, verify, and report financial information.

Financial Fraud

Intentional acts of deception involving financial transactions for the purpose of personal gain, such as embezzlement, insider trading, and fraudulent financial reporting.