Marilyn Wants to Know How to Determine the Amount of Net

question 76

Multiple Choice

Marilyn wants to know how to determine the amount of net income the business earns for each dollar invested by the owner.You tell her that she should

• A) compute the earnings-per-share ratio.
• B) compute an acid-test ratio.
• C) compute the current ratio.
• D) compute return-on-equity ratio.
• E) compute the return-on-sales ratio.

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