The ________ Ratio Measures the Owner's Rate of Return on the Investment

question 101

Multiple Choice

The ________ ratio measures the owner's rate of return on the investment in the business.

• A)net profit-to-equity
• B)net profit on sales
• C)quick profit
• D)net sales-to-working capital

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Definitions:

Gratuitous Bailment

A bailment where the bailee (the person receiving the property) does not pay the bailor (the property owner) and holds the property for the benefit of the bailor or a third party.

Intangible Property

Property that is incapable of being apprehended by the senses (such as by sight or touch). Intellectual property is an example of intangible property.

Patent

A government grant giving an inventor exclusive rights to make, use, or sell an invention for a certain number of years.

Bailee

A person or entity entrusted with custody of property belonging to another.