Which of the Following Is the Correct Mathematical Expression for Return

question 25

Multiple Choice

Which of the following is the correct mathematical expression for return on investment?

• A) Sales margin ÷ capital turnover.
• B) Sales margin + capital turnover.
• C) Sales margin - capital turnover.
• D) Sales margin × capital turnover.
• E) Capital turnover ÷ sales margin.

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Definitions:

Paid Note

A paid note is a promissory note that has been fully repaid by the borrower, signifying the end of the loan agreement.

Dishonored Note

A promissory note that has not been paid by the maker at its maturity date.

Promissory Note

A written, unconditional promise by one party to pay a certain sum of money to another party at a specified date or on demand.

Amount Due

The total sum of money owed to a creditor by a debtor at a specific date.