A Factor in Determining the Rate of Return on Investment--The

question 154

Multiple Choice

A factor in determining the rate of return on investment--the ratio of sales to invested assets--is called:

• A) profit margin
• B) indirect margin
• C) investment turnover
• D) cost ratio

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Definitions:

Journal

A chronological record of all business transactions, used to transfer information to the general ledger.

Prepaid Insurance

Expenses paid in advance for insurance coverages that extend beyond the current accounting period.

Posting References

Codes or numbers used to track the transfer of information from journals to ledgers in the accounting process.

Cash

A form of currency that companies and individuals use for transactions or to settle debts.