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:

Revenue Recognized

The process of recording revenues in the financial statements when they are earned and measurable, regardless of when cash is received.

Accounting Period

The specific time span for which financial information is reported, generally a quarter or a year.

Financial Statements

Reports that provide information about an entity's financial performance and position.