In the DuPont Formula,return on Assets Equals

question 267

Multiple Choice

In the DuPont formula,return on assets equals:

• A)Gross margin on sales x Inventory turnover.
• B)Profit margin on sales x Inventory turnover.
• C)Gross margin on sales x Asset turnover.
• D)Profit margin on sales x Asset turnover.

Understand the characteristics and classification of strategic investments.

Comprehend the concepts of consolidated financial statements and significant influence.

Differentiate between realized and unrealized gains and losses.

Understand reporting and accounting for debt investments.

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Definitions:

Fair Value Adjustment-Trading

The process of adjusting the valuation of trading securities to reflect their current market value.

Adjusting Journal Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Stock Investments

Stock investments refer to the purchasing of shares in companies as a means of owning a portion of the company and potentially earning dividends or capital gains.

Journal Entries

The recordings of financial transactions in an accounting system which form the basis of building financial statements.