The Simple Rate of Return Focuses on Accounting Net Operating

question 60

True/False

The simple rate of return focuses on accounting net operating income rather than on cash flows

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Definitions:

Debit Balance

The remaining amount in a financial account whereby the sum of debits exceeds the sum of credits, typically indicating expenses or assets.

Perpetual Inventory System

A bookkeeping approach that instantly logs the transaction of inventory sales or purchases using computerized point-of-sale systems and enterprise asset management software.

Merchandise Returned

Goods that are sent back to the seller by the buyer, usually due to defects, incorrect orders, or other reasons.

FOB Destination

A term in shipping indicating that the seller retains ownership and responsibility for the goods until they are delivered to the buyer's location.