The Ratio of Profits to Owner Investment in a Business

question 45

Multiple Choice

The ratio of profits to owner investment in a business is called

• A)return on equity.
• B)return on assets.
• C)return on sales.
• D)return on inventory.

Comprehend the purpose and applications of regression analysis in the real world.

Interpret the output of regression analysis, including RS1U1P12S1S1P0, F-value, p-value, and the distribution of residuals.

Understand how debt securities are initially recorded and valued.

Calculate and understand interest accruals on debt securities.

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Definitions:

Sales Revenue

The income received by a company from its sales of goods or services, before any expenses are deducted.

Unit Selling Price

The price levied for an individual unit of a product or service.

Break-even Analysis

A financial calculation to determine the sales volume at which a business neither makes a profit nor a loss.

Cost-volume-profit Analysis

An accounting method used to determine how changes in costs and volume affect a company's operating income and net income.