Which of the Following Measures the Amount of Sales Dollars

question 69

Multiple Choice

Which of the following measures the amount of sales dollars generated from each dollar of capital invested in assets?

• A)Return on sales
• B)Return on investment
• C)Accounts receivable turnover
• D)Capital turnover

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Definitions:

Passive Portfolio Management

An investment strategy that tracks a market-weighted index or portfolio, minimizing buying and selling to reduce costs and turnover.

Mispriced Securities

Mispriced Securities are financial instruments that have a market price significantly different from their intrinsic value.

Efficient Market Hypothesis

A theory that suggests all known information is already reflected in stock prices; therefore, it is impossible to consistently achieve higher returns than the overall market.

Nonzero Alphas

Refers to the active return on an investment, indicating performance that deviates from the expected risk-return trade-off.